Submitted by Shnikes t3_11cv96y in explainlikeimfive
lurq_king t1_ja58xpa wrote
Reply to comment by earazahs in ELI5: Why are some tax credits non refundable? by Shnikes
You’re missing OP’s point. Some credits are refundable and others are not. Credits are deducted from taxes due, but some can take the amount due below zero resulting in a refund (or increased refund), whilst other cannot.
Deductions reduce income, before tax.
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