Tax Credits and Payments

This intermediate course examines how credits are divided into refundable and nonrefundable. Nonrefundable credits cannot be used to offset the recapture of any other credit or to offset taxes other than income tax. The credits must be computed in order of priority to ensure that limitations are properly applied. A refundable tax credit is treated as a payment and can be refunded to the taxpayer by the IRS. Refundable tax credits are used to offset certain taxes that normally are not reduced.


At the end of this course, the student will be able to do the following:

  • Explain how a nonrefundable credit affects the taxpayer’s tax liability.
  • Name the refundable credits.
  • Understand the Earned Income Credit (EIC) qualifications.
  • Understand who qualifies for the additional child tax credit.
  • Know the rules for the refundable portion of the American opportunity credit.
  • Recognize when a dependent qualifies for the Other Dependent Credit (ODC).

Field of Study: Federal Tax Law 3 Hours
Course Level: Intermediate
Prerequisite: General tax preparation knowledge is required
Delivery Method: Self-Study

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