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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
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 tax credits. Select the nonrefundable tax credits listed on Form 1040 and Schedule 3, Part I. Check all that apply. Education credits (lifetime learning credit) Child and dependent care credit Capital losses tax credit Medical and dental tax credit Charitable contributions 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 Student loan interest tax credit Additional child tax credit American opportunity tax credit Health savings account tax credit
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