Refundable tax credits
I have been surprised how recent news about people’s tax refunds often omits discussion of refundable tax credits. I shouldn’t be surprised. I didn’t know anything about them until I became a volunteer tax preparer. Like the news articles, I thought people got refunds because they had more money withheld than they owed in taxes.

That is only part of the story. About one in five tax filers qualify for the Earned Income Credit. This year, almost all families qualify for the Child Tax Credit. These refundable credits were designed to put money in the pockets of low and moderate-income workers, especially those who have children.