What is Refundable Tax Credit?
A refundable tax credit means you can get money back even if you don’t owe any tax.
When you file your taxes, you subtract tax credits from the amount you owe.
Most tax credits can only reduce your taxes to zero. Refundable credits give you any extra money as a refund.
It’s smart to file taxes, even if you don’t owe anything.
Many people miss out on refunds because they don’t file.
Check if you qualify for these refundable tax credits.
Earned Income Tax Credit (EITC)
To qualify, you need to have less than $11,000 from investments and earn less than a certain income amount from your job.
This income amount changed based on your situation:
if your income is over these amounts, you can’t get the credit.
- if you’re single with no children: $17,640
- if you’re married filing jointly with 3 or more children: $63,398
Maximum EITC amounts are:
| Filing Status | With 0 qualifying children | With 1 qualifying children | With 2 qualifying children | With 3 or more qualifying children |
|---|---|---|---|---|
| single, head of household or qualifying surviving | $600 | $3,995 | $6,604 | $7,430 |
| Married filing jointly | $600 | $3,995 | $6,604 | $7,430 |
Find out more about the Earned Income Tax Credit (EITC)
Child Tax Credit (Partially Refundable)
If you have a child, you may be eligible for the Child Tax Credit.
For 2023, the credit is up to $2,000 per qualifying child.
To qualify, a child must:
- Have a Social Security number
- Be under age 17 at the end of 2023
- Be claimed as a dependent on your tax return
A portion of the Child Tax Credit is refundable for 2023.
This portion is called the Additional Child Tax Credit (ACTC).
For 2023, up to $1,600 per child may be refundable.
Find out more about the Child Tax Credit
American Opportunity Tax Credit (Partially Refundable)
If you paid qualified education expenses for an eligible college student,
you may be able to claim a credit of up to $2,500 per year.
Up to $1,000 of the American Opportunity Tax Credit is refundable.
Your income must be $90,000 or less ($180,000 or less for married filing jointly) to claim the credit.
Premium Tax Credit
If you buy health insurance through the Health Insurance Marketplace and meet other criteria,
you may be able to claim the Premium Tax Credit.
This is a refundable credit based on your income and the cost of your healthcare plan.
