What is a “refundable tax credit” – Ive seen both Obama and McCain claim they are offering them?
A refundable tax credit is a credit that may make you eligible to receive more money from the government than you paid. If I spent $10,000 in taxes and had $12,000 in refundable tax credits, the government would actually owe ME $2000 for the year. If, on the other hand I had no refundable tax credits and $12,000 in “normal” tax credits it’d be a wash.
