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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...

  • What is the child tax credit?

    The child tax credit is a type of refundable personal tax credit. Basically, taxpayers will receive a tax credit of $2,000 for each qualifying child. Qualifying child must be under 17 years old. There are a number of phase outs and limitations, so be sure to consult with your tax professional before applying the refundable...

  • What is the earned income credit?

    The earned income credit is offered to low to moderate income working families (especially those with children). The earned income credit is a refundable tax credit, which means that a family can qualify for the credit even if their taxable income is $0. Criteria for taxpayers who qualify for the earned income credit are as...