What is a refundable tax credit?

A refundable tax credit can provide a cash refund, even if you don't owe taxes. Unlike most tax credits, which only reduce your tax bill to zero, refundable credits give back any remaining amount.

It's important to file your taxes even if it’s not required, as many eligible individuals miss out on these refunds.

Child Tax Credit 

To qualify, your child must:

• - Have a Social Security number
• - Be under 17 at the end of 2024
• - Be claimed as a dependent

2024 you can receive up to $1,700 per child through the refundable Additional Child Tax Credit (ACTC).

American Opportunity Tax Credit

If you paid qualified education expenses for a college student, you may claim up to $2,500 per year, with a refund of up to $1,000. Income limits are $90,000 for individuals and $180,000 for married couples.

Premium Tax Credit

This refundable credit is available for those buying health insurance through the Health Insurance Marketplace and is based on income and healthcare costs.

Fuel Tax Credit

If you buy fuel for off-highway business and farming, you may be eligible for a refundable Fuel Tax Credit.

Check www.irs.gov for more details on these credits.