What Is a Tax Credit? Subtract tax credits from the amount of tax you owe. There are two types of tax credits: A nonrefundable tax credit means you get a refund only up to the amount you owe. A refundable tax credit means you get a refund, even if it's more than what you owe. What Is a Tax Deduction? Subtract tax deductions from your income before you figure the amount of tax you owe. Business Taxpayers Find credits and deductions for businesses Credits for Individuals Family and Dependent Credits Earned Income Tax Credit Child and Dependent Care Credit Adoption Credit Child Tax Credit and Credit for Other Dependents Credit for the Elderly or Disabled Income and Savings Credits Earned Income Tax Credit Saver's Credit Foreign Tax Credit Excess Social Security and RRTA Tax Withheld Credit for Tax on Undistributed Capital Gain Nonrefundable Credit for Prior Year Minimum Tax Homeowner Credits Residential Energy Efficient Property Credit Low-Income Housing Credit (for Owners) Frequently Asked Questions on Capital Gains, Losses, and Sale of Home Health Care Credits Premium Tax Credit (Affordable Care Act) Health Coverage Tax Credit Education Credits American Opportunity Credit and Lifetime Learning Credit Deductions for Individuals Work Related Deductions Home Office Business Entertainment Expenses Employee Business Expenses Itemized Deductions Deductible Taxes State and Local Tax Deduction Limit Property Tax Real Estate Tax Sales Tax Charitable Contributions Gambling Loss Miscellaneous Expenses Interest Expense Home Mortgage Interest Moving Expenses Education Deductions Student Loan Interest Work-Related Educational Expenses Teacher Educational Expenses Health Care Deductions Medical and Dental Expenses Health Savings Account (HSA) Investment Related Deductions Sale of Home Individual Retirement Arrangements (IRAs) Capital Losses Bad Debt Opportunity Zones
