Refundable tax credits are a valuable tool for those who may not owe taxes or owe very little taxes, but still want to receive a tax refund. These types of credits can be used to receive a refund even if you don’t owe any taxes. In this blog post, we will take a closer look at two of the most common types of refundable tax credits: the Earned Income Tax Credit (EITC) and the Additional Child Tax Credit (ACTC).

1. The Earned Income Tax Credit (EITC) The Earned Income Tax Credit (EITC) is a refundable tax credit designed to help low-income earners and working families. The credit amount varies depending on your income, filing status, and the number of children you have. To qualify for the EITC, you must have earned income from a job or self-employment and meet certain income requirements. The EITC can be worth up to $6,660 for tax year 2021.
2. The Additional Child Tax Credit (ACTC) The Additional Child Tax Credit (ACTC) is a refundable tax credit that is designed to help families with children. It is based on the Child Tax Credit (CTC), but can be claimed in addition to the CTC if the credit amount is greater than the taxes you owe. The ACTC is worth up to $1,410 per child for tax year 2021.
   Both the EITC and ACTC are refundable tax credits, meaning that if the credit amount is greater than the taxes you owe, you can receive a refund for the difference. These tax credits can provide much-needed financial assistance for low-income families and those with children.
   It’s important to note that the tax laws and regulations are subject to change, so it’s always a good idea to consult with a tax professional or refer to the IRS website for the most up-to-date information on the Earned Income Tax Credit and Additional Child Tax Credit.
   

In conclusion, refundable tax credits are a valuable tool for those who may not owe taxes or owe very little taxes, but still want to receive a tax refund. Two of the most common types of refundable tax credits are the Earned Income Tax Credit (EITC) and the Additional Child Tax Credit (ACTC). The EITC is designed to help low-income earners and working families and the ACTC is designed to help families with children. It’s important to understand the different types of refundable tax credits and how they can benefit you, and consult with a tax professional for more information.