Tax Credits

The child tax credit is a tax credit tied to qualifying children and can reduce tax owed, with some rules allowing refundable benefit.

The earned income tax credit is a credit for qualifying taxpayers with earned income and is often discussed as a major refundable credit.

A refundable tax credit can still provide benefit even after tax liability has been reduced to zero.

A nonrefundable tax credit can reduce tax liability but generally cannot continue providing tax benefit after liability reaches zero.

Tax credit terms that explain how credits reduce tax owed and when refunds can still result.

The foreign tax credit is a tax credit concept that can reduce tax by giving credit for qualifying foreign taxes under the applicable rules.