Refundable Tax Credits

Refundable tax credits are benefits provided by the government that reduce your tax bill and can result in a refund if the credit exceeds the amount of taxes owed. For example, if you qualify for a $1,000 refundable tax credit but only owe $600 in taxes, you would not only have your tax bill reduced to zero but also receive a $400 refund. These credits aim to support individuals and families, making them beneficial for low- to moderate-income earners, as they provide financial relief even if no taxes are owed.