Internal Revenue Service United States Department of the Treasury
Level Basic Advanced Military International

Credit for Child and Dependent Care Expenses

Nonrefundable Credit

What is a Nonrefundable Credit?

A nonrefundable credit is a dollar-for-dollar reduction of the tax liability that can only reduce the tax liability to zero. The credit discussed in this lesson is a nonrefundable credit. Generally, nonrefundable credits are applied against federal tax in the order they are listed on Form 1040, page 2, in the Tax and Credits section.