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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.

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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!​