Non-Refundable Tax Credit

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Dictionary Says

Definition of 'Non-Refundable Tax Credit'

A tax credit that can't reduce the amount of tax owed to less than zero. If the credit were able to reduce the amount of tax owed to less than zero, the taxpayer would be entitled to a payment from the government.

Also referred to as a "wastable tax credit."
Investopedia Says

Investopedia explains 'Non-Refundable Tax Credit'

A tax credit is applied to the amount of tax owed by the taxpayer after all deductions are made from his or her taxable income. For example, before credits, if the tax owed to the IRS is $500 and the taxpayer has a tax credit of $200, the total amount owed is $300. If the taxpayer has total non-refundable credits of $600, his or her tax bill will be $0 ($500 tax bill - $600 in non-refundable tax credits). An example of a non-refundable tax credit is the saver's tax credit, which is available to taxpayers who make contributions to retirement savings plans.

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'Non-Refundable Tax Credit'

  • Tax Credit For Plan Expenses Incurred By Small Businesses

    http://www.investopedia.com/articles/retirement/04/012104.asp
    ... a small business owner who recently established a retirement plan for your business ,
    you may be eligible to receive a nonrefundable tax credit for expenses ...

  • Saver's Tax Credit: A Retirement Savings Incentive

    http://www.investopedia.com/articles/retirement/04/031704.asp
    ... Saver's Tax Credit Defined The saver's credit is a non-refundable tax credit available
    to eligible taxpayers who make salary-deferral contributions to their ...

  • Give Your Taxes Some Credit

    http://www.investopedia.com/articles/tax/08/tax-credit.asp
    ... Additional Child Tax Credit - The child tax credit applies to taxpayers who qualify
    for the non-refundable child tax credit, but who are unable to claim the ...

  • How do I sign up for the saver's tax credit?

    http://www.investopedia.com/ask/answers/05/saverstaxcredit.asp
    ... The saver's tax credit is a non-refundable tax credit available to eligible taxpayers
    in the US who make contributions to their employer-sponsored 401(k), 403(b ...

  • Top Tax Refunds For Recent Grads

    http://www.investopedia.com/articles/tax/10/tax-refunds-for-grads.asp
    ... the Hope Credit. This is a non-refundable tax credit. Thus, you can't get
    a refund for more than you paid in taxes. For example, let's ...

  • IRA Contributions: Deductions and Tax Credits

    http://www.investopedia.com/articles/retirement/05/022105.asp
    ... refundable tax credit is allowed in addition to any deduction you may receive for
    your IRA contribution. For more information on this nonrefundable tax credit, ...

  • How do I get credit for my retirement plan contributions?

    http://www.investopedia.com/ask/answers/07/taxtipplan.asp
    ... Under this incentive program, you are eligible for a non-refundable tax credit of
    up to $1,000 for contributions you make to an individual retirement account ...

  • Retirement Planning For 20-Somethings: Choosing Savings Accounts ...

    http://www.investopedia.com/university/retirement-20/retirement-204.asp
    ... The savers credit provides eligible taxpayers with a non-refundable tax credit of
    up to $1,000 for contributions made to IRAs and salary deferral contributions ...

  • Five Retirement-Wrecking Moves

    http://www.investopedia.com/articles/retirement/07/retirement-ruin.asp
    ... They will also enjoy the benefits of tax-deferred growth on their retirement savings
    and receive a nonrefundable tax credit for the amounts they add to their ...

  • What are some commonly missed deductions for business owners?

    http://www.investopedia.com/ask/answers/07/taxtipbusiness.asp
    ... you own a small-business and recently established a retirement plan for the business,
    you may be eligible to receive a non-refundable tax credit for expenses ...

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