Currently, taxpayers who make under $200,000 annually as a single filer, or $400,000 if filing jointly, can qualify for a ...

Congress is trying to increase the maximum credit amount through its budget reconciliation process, but the chambers differ ...

The Senate has passed its version of the One Big Beautiful Bill Act - with an expanded Child Tax Credit (CTC) for American families making it into the bill. The Senate approved the bill on July 1 ...

Right now, you can claim up to $2,000 per child under 17 on your taxes. Without any action from Congress, that amount drops ...

"A refundable credit is a tax credit you get on your tax return, no matter what your tax liability is," says Lawrence Pon, a tax specialist who owns an accounting firm in San Francisco.

Among the most familiar refundable credits is the earned income tax credit (EITC) . In addition to the federal credit, many states offer it as well. Earned Income Tax Credit. For tax year 2023, if ...

For example, if your tax liability is $400, and you claim a refundable credit worth $2,000, you would receive a tax refund of $1,600. Some tax credits are partially refundable, which means you may ...

These credits, which can be worth more than you owe in taxes, are a powerful way to slash your bill and potentially boost your tax refund. "A refundable credit is a tax credit you get on your tax ...

Let's say you owe $1,000 in taxes before applying a tax credit of $2,000. If that credit is non-refundable, you'll end up wiping out what you owe, but you won't get a check for the difference.

Understanding Refundable Credits . A refundable credit is called refundable because the taxpayer can receive a payment from the U.S. government through the Internal Revenue Service (IRS) if the ...

Tax credits, on the other hand, directly reduce your tax bill. So if you owe $5,000 in taxes for the year, but you receive $2,000 in credits, you'll only pay $3,000 in taxes.

Some refundable tax credits have a refundable portion and a nonrefundable portion. Take the child tax credit , which is available to qualified families with a child under age 17.