nonrefundable credits

Nonrefundable credits are tax benefits that reduce your owed taxes dollar for dollar, but only up to the amount of your total tax liability. If the credit exceeds what you owe, the leftover amount doesn't get refunded to you; it simply disappears. Think of it as a coupon that can cover part of your bill but can’t be used to get extra money back if the discount is larger than what you owe. These credits are used to lower your taxes owed but do not provide a refund if they surpass your tax bill.