What Are Nonrefundable Federal Tax Credits?
November 30th, 2008 by admin
People often do not know that there are more than one type of federal tax credits. The nonrefundable federal tax credits are less desirable.
The refundable tax credits are better for tax payers. If you think that you are eligible for nonrefundable Federal tax credits then you should make sure you know all the rules and what to do to claim them.
These tax credits can reduce your income to zero. Therefore, it will wipe out your tax liability to zero. However, unlike refundable tax credits, if you do not have any taxes due, then you will not get a tax refund.
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