Question

There are many different types of tax credits. Discuss one tax credit. Is it refundable or non-refundable. Please make sure you each discuss a different type of tax credit.

**The answer is 1 page or less**

**You must have a citation to either the text book or to another independent source. Please cite your source using either the APA or the MLA style. Internet sources such as those having "Fool", "opedia", "For Dummies" etc. are not acceptable**

Answer 1

make sure you're up to speed on any credits you may be able to claim, as that could make a serious dent in your tax burden or even result in the IRS writing you a nice check
A tax credit reduces your tax liability dollar-for-dollar. This means that a $500 tax credit actually takes $500 off your tax balance due. A tax deduction, on the other hand, reduces your taxable income and is equal to the percentage of your marginal tax bracket
Refundable credits are the most versatile type of tax credit. These credits are treated just like tax payments that you make to the IRS, such as income taxes withheldfrom your paycheck or estimated tax payments that you make throughout the year. In other words, a refundable credit is subtracted from the amount of taxes you owe (after deductions), similar to the way the tax withheld from your paycheck is subtracted from your total yearly tax liability.
Example of refundable tax credits

Additional Child Tax Credit
Earned Income Tax Credit (EITC)
Health Coverage Tax Credit
Small Business Health Care Tax Credit

I think you will get the sufficient information from the above