What is the adoption credit?
The adoption credit is a type of nonrefundable tax credit. The adoption credit exists for parents who are adopting a child. Basically, taxpayers can receive a credit for expenses incurred to adopt a child, such as legal fees, court fees, travel fees, etc. However, medical expenses incurred for adopting a child are not eligible expenses.
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What is a refundable tax credit?
A refundable tax credit is one of the two types of personal tax credits that individual taxpayers can qualify for. A refundable tax credit means that a taxpayer can get a refund, even if it is more than the taxpayers tax liability. As you can see in the example below, the taxpayers tax liability is...
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What is a nonrefundable tax credit?
A nonrefundable tax credit is one of the two types of personal tax credits that individual taxpayers can qualify for. A nonrefundable tax credit means you get a refund only up to the amount you owe. As you can see in the example below, even though the taxpayer has applicable credits of $150, their taxable...
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Am I eligible for a tax refund even with no taxable income?
Yes, potentially. Even if the taxpayer does not have any taxable income, the taxpayer may still qualify for certain refundable tax credits. It is important to understand that refundable tax credits aren’t limited by the taxpayers taxable income. As you can see in the example below, since the taxpayer had taxable income of $0, he/she...
What is a refundable tax credit?
A refundable tax credit is one of the two types of personal tax credits that individual taxpayers can qualify for. A refundable tax credit means that a taxpayer can get a refund, even if it is more than the taxpayers tax liability. As you can see in the example below, the taxpayers tax liability is...
What is a nonrefundable tax credit?
A nonrefundable tax credit is one of the two types of personal tax credits that individual taxpayers can qualify for. A nonrefundable tax credit means you get a refund only up to the amount you owe. As you can see in the example below, even though the taxpayer has applicable credits of $150, their taxable...
Am I eligible for a tax refund even with no taxable income?
Yes, potentially. Even if the taxpayer does not have any taxable income, the taxpayer may still qualify for certain refundable tax credits. It is important to understand that refundable tax credits aren’t limited by the taxpayers taxable income. As you can see in the example below, since the taxpayer had taxable income of $0, he/she...
