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 can reduce your tax liability to zero, but if the credit is more than the tax liability, the excess is not returned to you is Schedule 3 of tax Form 1040 titled, "Additional Credits and Payments" lists nonrefundable and refundable tax credits. Select the nonrefundable tax credits listed on Form 1040 and Schedule 3, Part I. Check all that apply. Residential energy tax credit Child and dependent care credit O Charitable contributions tax credit Foreign tax credit O Retirement savings contribution credit fundable tax credits Child and dependent care credit O Charitable contributions tax credit O Foreign tax credit Retirement savings contribution 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. O Net premium tax credit Earned income tax credit O Student loan interest tax credit Additional child tax credit O Credit for federal tax on fuels