5. Tax credits What are tax credits? Your adjustments and deductions reduce your taxable income Tax credits, on the other hand, are directly applied to the tax that you pay. You may take tax credits regardless of whether you itemize deductions. Many credits are limited, based on income levels, so the amount of a credit may be reduced for high-income taxpayers. The following statement refers to refundable or nonrefundable tax credits. A tax credit that reduces your income tax liability to below zero with the excess being returned to you is Schedule 3 of tax Form 1040 titled, "Additional Credits and Payments" lists nonrefundable and refundable credits listed on Form 1040 and Schedule 3, Part I. Check all that apply. refundable It the nonrefundable tax nonrefundable Retirement savings contribution credit Medical and dental tax credit Casualty and theft loss tax credit Capital losses tax credit Foreign tax credit Schedule 3 of tax Form 1040 titled, "Additional Credits and Payments" lists nonrefundable and refundable tax credits. Select the refundable tax credits listed on Form 1040 and Schedule 3, Part II. Check all that apply. IRA tax credit Net premium tax credit Social Security contributions tax credit Earned income tax credit Health savings account tax credit