Tax Credits & Refund Guides

Tax Credits and Tax Deductions Are Different

Tax credits and deductions can both affect a tax return,
but they generally work in different ways.

A deduction generally reduces the amount of income subject to tax,
while a credit generally reduces tax according to the rules
that apply to that particular credit.

Some credits may be refundable, partially refundable,
or nonrefundable depending on current tax law.

Federal and State Tax Credits

Federal tax credits are not the only credits that may be available.

Some states offer their own earned income credits,
child-related credits, renter or homeowner credits,
education benefits, energy incentives, or other tax programs.

State eligibility rules can be different from federal rules,
so check the tax agency for the state where you file.

What I Would Gather Before Filing

Before preparing a tax return or checking eligibility for a credit,
I would organize the records that apply to my household and income.

Depending on your situation, useful documents may include:

• W-2 forms
• 1099 forms
• Other income records
• Social Security or taxpayer identification information
• Dependent information
• Childcare expense records
• Education-related tax forms
• Health insurance tax documents when applicable
• Prior-year tax return
• Records supporting deductions or credits you intend to claim

The documents required depend on your individual tax situation.

Free Tax Preparation May Be Available

Some taxpayers may qualify for free tax preparation or filing assistance.

Programs may include online filing options as well as volunteer
tax preparation services offered through approved community locations.

Eligibility, participating providers, and available services can change
from one filing season to another.

Why Tax Credit Information Changes

Tax laws can change between tax years.

Income limits, credit amounts, phaseout ranges,
qualifying-child rules, filing requirements, and deadlines
may be different from the previous filing season.

For this reason, always check information for the tax year
you are actually filing rather than relying on an older article,
social media post, or previous tax return.

Tracking a Tax Refund

After a return is filed, processing time may depend on the type
of return, how it was filed, whether additional review is required,
and whether information on the return needs to be verified.

Use the official federal or state tax agency’s refund tracking
system whenever possible.

A refund estimate provided by tax software or another service
should not be treated as a guarantee of the final payment date.

Watch for Tax and Refund Scams

Be cautious of messages claiming that you must immediately pay
a fee to receive a tax refund or government tax credit.

Avoid providing Social Security numbers, banking information,
passwords, or tax documents through links in unexpected emails,
text messages, or social media messages.

When checking a tax account, refund, or government tax program,
use the official tax agency website whenever possible.

Verify Current Tax Rules

FactBob provides general educational information to help readers
understand common tax programs and resources.

Federal and state tax agencies remain the authoritative source
for current filing requirements, eligibility rules,
deadlines, refund information, and tax credit amounts.