This intermediate course will examine and determine how credits are divided and classified as refundable and nonrefundable according to the IRS. Nonrefundable credits cannot be used to offset the recapture of any other credit or to offset taxes other than income tax. 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).