La Quinta, CA
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Monday, May 25, 2015

Most Personal U.S. Tax Credits are Non-Refundable

The majority of income tax credits in the United States for personal taxes are non-refundable. This means after the tax credit wipes out your taxes due for the year, you will not receive money back. There are some U.S. income tax credits that are refundable. The non-refundable tax credits are listed below for personal income taxes.

U.S. Personal Non-Refundable Income Tax Credits

  • Child & Dependent Care Tax Credit
  • Elderly or Disabled Income Tax Credit
  • Residential Mortgage Interest Tax Credit
  • Adoption Tax Credit
  • American Opportunity Tax Credit
  •  Lifetime Learning Credit

Even though the credit is non-refundable, it may still be a good idea to use the tax credit in the case that there is a refundable tax credit available so that the non-refundable credit can reduce your taxes to zero, and then the refundable tax credit can be refunded to you.

Contact Borders Bookkeeping for any income tax preparation needs you may have.