If your tax burden is lower than the maximum credit, you may receive a refund. This tax credit is phased out for higher-income families, as it was intended to help low- to middle-income workers. In order to qualify, you are subject to maximum income requirements. This credit was recently expanded to allow those who do not owe any taxes to still qualify for a refund even if they wouldn't have normally filed a return.
If you paid college tuition or other qualified education expenses, this generous tax credit could provide a nice refund check but is limited to a maximum of four years of eligibility per student.
Savers Credit You may be eligible for an additional tax credit for some portion of the money you put into a qualified retirement savings plan, such as a k or IRA. You would potentially owe Social Security or Medicare taxes that were not withheld, or you're subject to the alternative minimum tax AMTwhich would require a return to be filed.
Many tax credits are available to you even if your tax bill will be essentially zero this year. Article Sources Investopedia requires writers to use primary sources to support their work.
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