What Type of Tax Credits are available?
Nonrefundable Tax Credits
These are credits acting as a tax break reducing one taxable income. Amounts that are greater than the tax owed are not paid out. These Credits are only available in the year of reporting.
Refundable Tax Credits
Refundable tax credits are the most favorable credits due to being paid in full. Regardless of the taxpayers income or tax liability they are entitled to the full amount of credit.
Partially Refundable Tax Credits
This is a tax credit that is only partially refundable. These credits play hand in hand with the Child Tax Credit and American Opportunity Tax Credit.
Interested in Tax Credit?
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