refundable tax credits for low-income families

Refundable tax credits are financial benefits that reduce the amount of taxes owed and can provide a cash refund if the credit exceeds your tax liability. For low-income families, programs like the Earned Income Tax Credit (EITC) aim to boost income and support expenses such as raising children. If the credit amount is larger than the taxes owed, the government pays you the difference directly. This helps improve financial stability by offering additional income that can be used for essentials. Refundable credits directly benefit those with limited income, regardless of their tax liability, making them a crucial support for low-income households.