Refundable credits are those that result in a payment to the taxpayer even when the amount of the credit (or credits)exceeds the taxpayer's tax liability.

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Refundable credits can result in the taxpayer receiving a payment from the government even if they have no tax liability or if the credit amount exceeds their tax liability. Examples of refundable credits include the Earned Income Tax Credit and the Additional Child Tax Credit.

Refundable Credits Are Those That Result in a Payment to the Taxpayer