The exclusive purpose for the information which is provided from this website is to disseminate information, and not to provide tax advice.
 Congress regularly changes the provisions of the U.S. Tax Code for different reasons. One reason is to provide an offset to your income tax liability which is in the form of a “tax credit” which is similar to and almost as important as a credit posted to your credit card account. Both reduce the amounts that you owe to either the taxing authority (Internal Revenue Service) or your credit card company. You’ll never have too much of either! Insofar as “tax credits” are concerned, they are classified as “refundable” or non-refundable”.Â
Refundable tax credits are the best. For example, if you do not owe any income taxes but you have a $2,000.00 refundable tax credit, you’ll receive a tax refund of $2,000.00. However, in the same situation with a non-refundable tax credit of $2,000.00 you will receive no tax refund. (more…)