Nonrefundable Credit

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August 31, 2024 4 min read Definitions

Nonrefundable Credit: A Type of Tax Credit

Taxes Finance Tax Credit Tax Liability Nonrefundable Credit Personal Finance IRS

A Nonrefundable Credit is a type of tax credit that can reduce your tax liability to zero but cannot result in a refund.

August 25, 2024 3 min read Definitions

Child and Dependent Care Credit: Nonrefundable Tax Credit

Taxes Finance Tax Credit Child Care Dependent Care AGI Nonrefundable Credit

A nonrefundable tax credit allowed for a percentage of expenses incurred for household services or care of a child or other dependent, where the taxpayer maintains a household that includes one or more dependents who are under 13 years of age or mentally or physically incapacitated. The percentage of the credit varies inversely with the taxpayer's Adjusted Gross Income (AGI) between $15,000 and $43,000.