Lawful Money and Refundable Tax Credits

Lawful Money and Refundable Tax Credits

A refundable tax credit is a credit one can get as a refund even if they don't owe any tax (i.e. $0 in taxable income). Refundable credits give any remaining credit as a refund. People who qualify for refundable credits may miss out on refunds because they do not file a tax return. Below are the current list of refundable tax credits allowed by the IRS.

Earned Income Tax Credit (partially refundable)
To qualify, one must have under $11,000 in investment income and earn less than a specific income level from working, up to $17,640 if single with no children and up to $63,398 if married filing jointly with 3+ children. Find more on the Earned Income Tax Credit (EITC) and how to qualify.

Child Tax Credit (partially refundable)
If one has a child, they may be eligible for the Child Tax Credit (CTC), up to $2,000 per qualifying child, including the Additional Child Tax Credit (ACTC), up to $1,600 per qualifying child. To qualify, a child must:
  • Have a Social Security Number
  • Be under age 17 at the end of the calendar tax year
  • Be claimed as a dependent on one's tax return
Find more on the Child Tax Credit and how to qualify.

American Opportunity Tax Credit (partially refundable)
If you paid qualified education expenses for an eligible college student, you may be able to claim a credit of up to $2,500 per year. Up to $1,000 of the American Opportunity Tax Credit is refundable.
Your income must be $90,000 or less ($180,000 or less for married filing jointly) to claim the credit.
Find more on the American Opportunity Tax Credit and how to qualify.

Premium Tax Credit (partially refundable)
If one buys health insurance through the Health Insurance Marketplace while meeting other criteria, it may qualify for the Premium Tax Credit based on one's income and the cost of the healthcare plan.

    • Related Articles

    • Income Taxes and Lawful Money

      Under its power to borrow money, Congress is authorized by the Constitution to contract debt, and whenever something is borrowed it must be returned. When Congress spends the contracted private credit, each use of credit is debt which must be ...

    • Can One Claim Child Tax Credits on Lawful Money Tax Return

      If a lawful money return results in a refund of the tax year's withholdings then what can those credits be applied to for this year? Nothing. It keeps rolling over until there is taxable income to apply the credits to or it expires. The government ...

    • What Is The Difference Between Tax Deduction vs Tax Credit

      Deductions can reduce the amount of income before calculating the tax owed. Credits can reduce the amount of tax owed or increase the refund amount. Certain credits may give a refund even if no tax is owed. Some common tax credits for individuals ...

    • What About Personal Income Taxes

      Yes it's true that Steve Miller, former Director of the Internal Revenue Service (IRS ) admitted at a Congressional hearing that the taxes collected by the IRS are not mandatory – but voluntary. When questioned at the House Ways and Means Committee ...

    • Lawful Money and Amortized Tax Depreciations Such As Straight-Line Depreciation

      An amortized tax depreciation will gradually write off the initial cost of (an asset) over a period. One such example is straight-line depreciation which spreads the cost of an asset evenly over the time it will be used, also known as its "useful ...