The Earned Income Tax Credit (EITC) is a refundable tax credit for low to moderate income working individuals and families.
Replace the charitable contribution deduction with a 12% non-refundable tax credit, subject to a 2% of adjusted gross income floor.
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If a refundable tax credit exceeds the tax bill generated by the production, the producers get a check for the overage.
This refundable tax credit, which in effect tops up the earnings of low-wage workers, is already America's single biggest anti-poverty programme.
The proposed change would make the combat pay a refundable tax credit that service members would file for at the end of the tax year.
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Replace the mortgage interest deduction with a 12% non-refundable tax credit.
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The PCA proposed changing the tax treatment of private health insurance and providing everyone with a refundable tax credit with which to purchase insurance in exchanges.
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It would provide a refundable tax credit for the purchase of health care, but it would also set up a voucher system for the purchase of Medicare down the road.
The mandate could be replaced with a refundable tax credit for the purchase of health insurance, though you would need significant new tax revenues to offset the cost of the credit.
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The plan replaces the current tax exemptions for employer-provided health insurance with a refundable tax credit, while Medicare benefits would ultimately be set aside in favour of a system of vouchers for private insurance.
This is especially useful if there is Child Tax Credit that becomes Refundable Child Tax Credit when you add the Retirement Savers Credit.
Another sticking point was the issue of a refundable child tax credit, which the Senate passed but the House did not.
Olympia Snowe, R-Maine, signed a letter saying they would not support a bill that does not include at least a partially refundable child tax credit -- something conservatives, including Thomas, opposed.
The effect on GDP would be negative, just as it would for proposed expansions of the income-capped refundable Earned Income Tax Credit, and the refundable part of the child credit.
The EITC is a refundable federal income tax credit targeted to low to moderate income working individuals and families since it helps offset Social Security taxes for taxpayers who work but make a limited amount of earned income during the year.
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It is too easy for people to take advantage of these programs, which ultimately hurts the people that genuinely need them (case in point: the Earned Income Tax Credit, which, as a refundable credit, is a magnet for unscrupulous tax preparers who seek to take advantage of the potential for higher fees).
You might also be able to claim a refundable credit such as the earned income tax credit (EITC).
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So an ID thief in possession of a valid name and Social Security number can create phony W-2s and apply for a refund of make-believe withholding, or for a refundable credit, such as the earned income tax credit, worth thousands of dollars.
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The researchers, who sampled one in every 5, 000 returns filed with the Internal Revenue Service, found that the tax system, with its progressive rates and refundable tax credits the earned income credit for the working poor and the child tax credit does reduce income inequality.
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The new law will make the child tax credit partially refundable.
Other examples of refundable credits include the additional child tax credit and, within limits, the American Opportunity Credit for students.
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Since the federal child-care tax credit is not refundable, it does little for those who do not earn enough to pay federal income tax.
The catch: Like many tax goodies, the new refundable credit is phased out for higher-income folks.
The oldest and biggest of the refundable credits the earned income tax credit has been caught for years in a cycle of expansions, crackdowns and delays.
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The Internal Revenue Service advised today that due to sequestration, there will be a reduction to the refundable portion of the Small Business Health Care Tax Credit for certain small tax-exempt employers.
The Senate budget would also cut taxes a bit by extending relatively generous rules for refundable credits such as the earned income and child tax credit.
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When a credit is refundable, a family can get back even more than it paid in tax.
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Refundable credits mean that you are entitled to a refund if the amount of the credit exceeds your own tax liability.
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Under current budget conventions, the refundable portion (that is, the piece of the credit that goes to recipients who already pay no tax) is considered spending.
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The new tax deal did extend the adoption credit permanently with one significant hit: the credit is no longer refundable.
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