What are Tax Credits ?

Tax credits under Internal Revenue Code are amounts of expenses which entitles you credit against the tax payable . In other words, if for any reason you get tax credit, you will have to pay the tax after reducing the tax credit available to you. There are basically two types of tax credit available to you-refundable tax credit and non-refundable tax credit.

  • Refundable tax credit means if the tax credit is more than tax payable , you will get the balance as refund.
  • Non-refundable tax credit are allowed only upto the tax payable. SO if there is extra -refundable tax credit, you will not get any tax refund.

List of Tax Credits Available to Individuals

For Family & Dependents

  1. Earned Income Tax Credit
  2. Child and Dependent Care Credit
  3. Adoption Credit
  4. Child Tax Credit
  5. Credit for the Elderly or Disabled

Health Care

Premium Tax Credit (Affordable Care Act)

Health Coverage Tax Credit

Tax Credit for Income and Savings

  1. Earned Income Tax Credit
  2. Saver’s Credit
  3. Foreign Tax Credit
  4. Excess Social Security and RRTA Tax Withheld
  5. Credit for Tax on Undistributed Capital Gain
  6. Nonrefundable Credit for Prior Year Minimum Tax
  7. Credit to Holders of Tax Credit Bonds

Tax Credit for Education

  1. Lifetime Learning Credit
  2. American Opportunity Tax Credit

Tax Credit for Homeowners

  1. Mortgage Interest Credit
  2. Residential Energy Efficient Property Credit
  3. Nonbusiness Energy Property Credit
  4. Low-Income Housing Credit (for Owners)

Electric Vehicle Credit

  1. Plug-in Electric Drive Motor Vehicle Credit
  2. Plug-in Conversion Credit (Section 30B(i))
  3. Alternative Fuel Vehicle Refueling Property Credit (Section 30C)
  4. New Qualified Fuel Cell Motor Credit (Section

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