Refundable and Non-Refundable Credits

Free IRS Enrolled Agent SEE Part 1 (Individuals) lesson in Deductions and Credits. 27 min read, ~4,062 words.

Refundable credits (EITC, ACTC \$1,700/child, 40% of AOTC up to \$1,000, Premium Tax Credit, Health Coverage Tax Credit) can generate a refund past zero tax; non-refundable credits (CTC remainder, CDCC, LLC, FTC, Saver's, Adoption, Energy) only offset liability. 2025 CTC is \$2,000 per qualifying child under 17 with an SSN...

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