Tax credits reduce the amount of income tax you owe to the federal government. Unlike deductions, which lower your taxable income, a tax credit directly cuts your tax bill dollar-for-dollar. Some credits are refundable, meaning you can receive money back even if you owe no tax. Others are nonrefundable and can only reduce what you owe. Older adults, lower-income households, and people with certain expenses or life situations often have credits available to them.
These articles explain how different tax credits work, who may be able to use them, and what records you need when you file your taxes. You'll learn about credits for caregiving costs, medical expenses, energy-efficient home improvements, and other situations that affect your tax return. The information here helps you understand your options before you meet with a tax preparer or file on your own.