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You will receive a tax refund if your total tax payments are greater than your total tax liabilities.
Review your tax return, Form 1040 Line 37 for taxes owed or Line 35a for a tax refund.
You can view your Form 1040 plus Schedules 1, 2 and 3 at any time using the online editions. Click on Tax Tools on the left side of the online program screen. Click on Tools. Click on View Tax Summary. Click on Preview my 1040 on the left side of the screen.
Not all deductions are refundable. A nonrefundable credit essentially means that the credit can’t be used to increase your tax refund or to create a tax refund when you wouldn’t have already had one. In other words, your savings cannot exceed the amount of tax you owe. For example, on your 2023 tax return, if the only credit you’re eligible for is a $500 Child and Dependent Care Credit, and the tax you owe is only $200—the $300 excess is nonrefundable. This means that the credit will eliminate the entire $200 of tax, but you don’t receive a tax refund for the remaining $300.
A nonrefundable tax credit is a reduction in the amount of income taxes that a taxpayer owes. It can reduce the amount owed to zero, but no further.
Other examples of nonrefundable credits: the foreign tax credit, education credits (American Opportunity Credit and Lifetime Learning Credit), and the child and dependent care credit.
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