Credits

[dartmouth26]

If you ran your own business, can your business expenses give you a refund. Also, what are some common credits that people are eligible for?

[FangxiaL]

Earned income, refundable child tax credit, and education credit such as American Opportunity Credit are some of the credits that taxpayers can receive if they qualify. After their tax liability is reduced to zero, they can receive the unused portion as a refund. For 2021, if you did not receive your 3rd stimulus check, you can claim it on your tax return as a refundable credit (so-called Recovery Rebate Credit). 

Business expenses can reduce your business income, and if your business income is low enough, you may qualify for the earned income credit. For tax year 2021, the age limit is removed, but normally a taxpayer has to be at least age 25 and under 65 to qualify for the Earned Income Credit. The credit will help to pay the self-employment tax. The net result might not be a refund unless you made estimated payments on the business income.