Quote:
Originally Posted by
dogretroÂ

What is the difference between refundable and non-refundable?
Someone else might have a better explanation, but as i understand it, refundable means you get the whole amount regardless of the amount of taxes you actually owe. This was especially good news for those doing foster care adoptions, because generally those adoption do not cost anything (or have minimal costs), and often those adopting foster kids have a lower income and dont owe alot of taxes anyway, so many people couldnt use the tax credit. But because the tax was refundable, it was alot like the earned income credit...families are getting a check from the govt not to offset taxes owed but more as a bonus. When it goes back to being nonrefundable, you can only get back as much as you owe in taxes.