Tax

There are a number of tax credits available and some do not understand the difference between refundable and nonrefundable credits. Nonrefundable means you can only deduct up to the amount of tax you owe. Refundable means you get the money even if you owe no taxes. The change made this year allows all of the credit to be deductible regardless of the tax you owe. Under the new rules this year if you are married and file joint and you have 5 children you can earn $150,000 and pay no income tax. This means that about 70% of working people will pay zero tax.