Tax Credit Sampler

Tax Credit Sampler

A tax credit reduces the income tax you may have to pay. Unlike a deduction, which reduces the income subject to tax, a credit directly reduces the tax itself.

Most tax credits are nonrefundable: If the credit amount exceeds the tax owed, no refund is given. Refundable credits are different: If the credit amount exceeds the tax owed, a refund may be due to the taxpayer.

While not a comprehensive list, the following personal tax credits are of general interest to individuals (for businesses, see General Business Tax Credits):

Prepared by Broadridge Advisor Solutions. © 2025 Broadridge Financial Services, Inc.