Refundable credit
A tax credit that can reduce tax liability below zero, resulting in a cash payment (refund) to the taxpayer. The EITC and the refundable portion of the CTC are examples of credits that can generate refunds.
A tax credit that can reduce tax liability below zero, resulting in a cash payment (refund) to the taxpayer. The EITC and the refundable portion of the CTC are examples of credits that can generate refunds.