![]() ![]() Note: The best tax software will determine your eligibility for tax credits using a question-and-answer interview process and automatically add your info to your electronic return, but we've also provided links to IRS forms for each tax credit for those filing on paper or those wishing to learn more. For example, up to 40% (or $1,000) of the maximum $2,500 for the American Opportunity Tax Credit can be put toward your tax refund if your tax liability hits $0. Partially refundable credits let you claim a portion of extra money. Fully refundable tax credits are just the opposite - if your refundable tax credits are more than the income taxes that you owe, you will receive the extra amount back in a tax refund. Nonrefundable tax credits can only be used against taxes that you owe - once your tax bill hits $0, you don't get the additional money. ![]() Tax credits are classified as either nonrefundable, fully refundable or partially refundable. Important: You don't need to itemize deductions to claim tax credits. ![]()
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