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

Miscellaneous Credits

Introduction

Nonrefundable Credits

A nonrefundable credit can only reduce the tax liability to zero. All the credits discussed in this lesson are nonrefundable credits.

Generally, nonrefundable credits are applied against federal tax in the order they are listed on Form 1040, Tax and Credits section, page 2.

Tax software hint.

The tax software will calculate these credits, but you must enter the correct information and make the correct determinations by using an intake and interview sheet and your resource materials.

A handful of money.