Tax Credits
Credit terms that explain family, education, marketplace, energy, and business credits in the filing workflow.
Tax credits matter because they reduce tax after liability has been computed. This section helps readers distinguish refundable and nonrefundable treatment, understand family and education credits, and place marketplace, energy, and business credits inside a real filing workflow.
For the fastest reading path, start with the mechanics pages first: Refundable Tax Credit, Nonrefundable Tax Credit, and Partially Refundable Tax Credit. Then move into the named credit families such as Child Tax Credit, Earned Income Tax Credit, and Premium Tax Credit.
Start Here
Core Credit Lanes
Start with mechanics
Then move into common household credits
Then move into specialized credit families
What This Section Covers
- Family and dependent-related credits such as the child, care, and adoption clusters.
- Education credits and the qualified-expense rules that support them.
- Marketplace health-coverage credits and advance-payment reconciliation.
- Clean-energy, vehicle, and employer-side business credits.
- Credit mechanics such as refundability, partial refundability, and carryforward treatment.
In this section
- Additional Child Tax Credit
Refundable child-credit mechanism that can let taxpayers benefit from unused child tax credit amounts.
- Adoption Credit
Credit for qualifying adoption expenses, with refundability and carryforward rules that can vary by tax year.
- Advance Premium Tax Credit
Advance payment of the premium tax credit sent to an insurer during the year and later reconciled on the return.
- American Opportunity Tax Credit
Partly refundable education credit for eligible students in the first four years of higher education.
- Child and Dependent Care Credit
Credit for certain work-related care expenses paid so a taxpayer can work or look for work.
- Child Tax Credit
The child tax credit is a tax credit tied to qualifying children and can reduce tax owed, with some rules allowing refundable benefit.
- Clean Vehicle Credit
Credit tied to qualifying clean-vehicle purchases, with rules that depend heavily on vehicle type, buyer facts, and acquisition date.
- Credit Carryforward
Unused credit amount that the tax rules allow a taxpayer to apply in a later year.
- Disabled Access Credit
Small-business credit for certain accessibility expenditures made to help people with disabilities.
- Earned Income Tax Credit
Refundable credit for qualifying taxpayers with earned income, often central to the final refund calculation.
- Education Credit
Umbrella term for higher-education credits, mainly the AOTC and lifetime learning credit.
- Employer-Provided Adoption Benefits
Employer adoption-assistance benefit that may be excluded from income under the tax rules.
- Energy Efficient Home Improvement Credit
Credit for certain qualified energy-efficient improvements to an existing main home, subject to annual limits.
- Foreign Tax Credit
Credit that can reduce U.S. tax later in the return by recognizing qualifying foreign taxes already paid.
- Fuel Tax Credit
Credit or refund mechanism for certain taxed fuel used in qualifying nontaxable ways.
- Lifetime Learning Credit
Nonrefundable education credit for qualifying postsecondary or job-skill education expenses.
- Nonrefundable Tax Credit
A nonrefundable tax credit can reduce tax liability but generally cannot continue providing tax benefit after liability reaches zero.
- Partially Refundable Tax Credit
Credit with both refundable and nonrefundable features rather than only one treatment.
- Premium Tax Credit
Health-coverage credit tied to marketplace insurance, household income, and benchmark premium rules.
- Qualified Education Expenses
Education costs that count toward education-credit calculations, depending on the specific credit being claimed.
- Refundable Tax Credit
A refundable tax credit can still provide benefit even after tax liability has been reduced to zero.
- Residential Clean Energy Credit
Credit for certain new residential clean-energy property, such as solar or battery systems, with carryforward features.
- Saver's Credit
Credit for certain retirement savings contributions made by eligible lower- and moderate-income taxpayers.
- Small Employer Health Insurance Credit
Credit for certain small employers that pay qualifying employee health-insurance premiums.
- Work Opportunity Tax Credit
Employer credit for qualifying wages paid to certified workers in targeted groups.