The catch: Like many tax goodies, the new refundable credit is phased out for higher-income folks.
You might also be able to claim a refundable credit such as the earned income tax credit (EITC).
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Yet, the deficit would be exactly the same whether Congress chose to provide that assistance through direct spending or through a refundable credit.
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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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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).
The Earned Income Tax Credit (EITC) is a refundable tax credit for low to moderate income working individuals and families.
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.
This is especially useful if there is Child Tax Credit that becomes Refundable Child Tax Credit when you add the Retirement Savers Credit.
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.
The non-refundable child care credit can be up to 35% of your qualifying expenses, depending upon your adjusted gross income (AGI).
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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.
When a credit is refundable, a family can get back even more than it paid in tax.
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The new law will make the child tax credit partially refundable.
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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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.
But there is no way to know today how much of the credit would be refundable, or even whether budget process reform would change those rules.
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The credit was only refundable in 2010 and 2011.
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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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Taxpayers in 2012 can claim the adoption credit but it is not refundable.
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