Click here for Powerpoint or image for PDF
Non-refundable credits can reduce your income tax liability plus any Advanced Premium Tax Credit (Marketplace) Repayment); however, it can only reduce your income tax liability and Advanced Premium Tax Credit (Marketplace) Repayment liability to zero $0.  (For example, if you have an income tax liability of $2,254, then the most non-refundable credit you can get is $2,254.  You could get less or no credit, but you can't get more than $2,254).  See PUB 4012 Section G

Examples of Non-Refundable Credits:
  • Child Tax Credit 
  • Credit for Other Dependents,
  • Child & Dependent Care Credit  (aka Daycare Credit)
  • Education credit (Lifetime and non-refundable American Opportunity)
  • Retirement Savings Credit
  • Credit for Elderly & Disabled
  • Residential energy credits
  • Foreign Tax Credit
  • and more


**Non-refundable credits do not pay/offset self-employment tax, tax on early distribution from retirement accounts, First Time Homebuyers Credit, or other taxes.

Click Here to Go Back to Training Checklist
Home
About
Contact Me
You can contact me at maryvitataxes@gmail.com 
Please note: I, Mary Meador, AM NOT a certified accountant or tax law expert. I volunteer with VITA providing free tax preparation for individuals and families whose income is less than $66,000 a year. We deal with simple returns at our sites.  I cannot guarantee the accuracy of all the information on this site as tax laws change and I may not have a clear understanding of complicated issues. I am trying to provide basic tax preparation information for our volunteers to get started--remember Publication 4012 is your go-to resource for questions, as well as irs.gov and Publication 17.  I hope you find this information useful and easy to understand. Thanks for being a VITA/TCE volunteer!

​All images from our UWLHG Canva account unless promoting the resource linked to​