What credits are available in the United States tax system?

There are two main types of tax credits available in the United States: refundable and non-refundable. Refundable credits can be used to reduce your tax bill or, if you owe no taxes, actually receive a refund from the government. Non-refundable credits can only reduce your tax bill, and any excess is lost.

The Earned Income Tax Credit (EITC) is a refundable credit available to low- and moderate-income workers. To qualify, you must have earned income from employment or self-employment and meet certain other requirements. The amount of the credit depends on your income and family size.

The Child and Dependent Care Credit is a non-refundable credit that can be used to offset the costs of caring for a child or other dependent. To qualify, you must have paid for care so that you could work or look for work. The amount of the credit is a percentage of your eligible expenses, up to a maximum amount.

The Child Tax Credit is a refundable credit available to taxpayers who have dependent children under the age of 17. The amount of the credit is $2,000 per child. To qualify, your child must meet certain requirements, such as being a U.S. citizen or resident and living with you for more than half the year.

The American Opportunity Tax Credit is a refundable credit available to taxpayers who are paying for college expenses for themselves or a dependent. The credit is worth up to $2,500 per student. To qualify, you must be enrolled in a degree or certificate program and be in your first four years of college.

The Lifetime Learning Credit is a non-refundable credit that can be used to offset the costs of tuition and other expenses for higher education. The credit is worth up to $2,000 per taxpayer. To qualify, you must be enrolled in an eligible educational institution. There is no limit on the number of years you can claim the credit.

These are just a few of the credits available to taxpayers in the United States. Be sure to check with the IRS to see if you qualify for any of these or other credits.