Credits
graphic that says Iowa 2010 Expanded 1040 Instructions
Questions? E-mail Us!
2010 Expanded Instructions Home
graphic link to I-D-R home page
graphic link to Iowa Tax Research Library
graphic image and link to topic index of 2010 Iowa income tax instructions by topic graphic link to 2010 Iowa income tax instructions by line number
graphic link to I-R-S Code
graphic link to I-R-S forms
graphic image to translation web site graphic link to Iowa e-file choices

CREDITS: REFUNDABLE OR NONREFUNDABLE
WHAT'S THE DIFFERENCE?

Although Iowa and the IRS may have the same type of credit, it may or may not be refundable on both returns.

Nonrefundable Tax Credit

A nonrefundable tax credit will reduce your tax liability. This credit may reduce your tax liability down to zero, but it will never generate a refund.

Refundable Tax Credit

A refundable tax credit will also reduce your tax liability. However, if this tax credit exceeds your tax liability it will generate an Iowa refund. An example of this type of credit is the Iowa Child and Dependent Care Credit or any other credit taken in Step 9 of the IA 1040 individual income tax form.