IRS Publication 5075 – Refundable Tax Credits – In the world of taxes, refundable tax credits can make a significant difference in your financial situation, potentially putting extra money back in your pocket even if you don’t owe taxes. IRS Publication 5075, titled “Refundable Tax Credits,” serves as a key resource for taxpayers looking to maximize their refunds. This short brochure, revised in June 2023, aims to raise awareness about these valuable credits and directs users to tools and further information. If you’re filing your 2025 taxes in 2026, understanding this publication could help you claim benefits like the Earned Income Tax Credit (EITC), Child Tax Credit (CTC), American Opportunity Tax Credit (AOTC), and Premium Tax Credit (PTC). In this SEO-optimized article, we’ll break down what IRS Publication 5075 covers, explain refundable tax credits, detail eligibility, and provide tips for claiming them based on the latest IRS guidelines.
What Is IRS Publication 5075?
IRS Publication 5075 is a concise, three-page document designed to help taxpayers maximize their tax refunds by claiming refundable credits. Released by the Department of the Treasury and Internal Revenue Service, it emphasizes that these credits don’t require you to owe taxes—you can still receive a refund if the credit amount exceeds your tax liability. The publication encourages visiting www.eitc.irs.gov for more details and includes QR codes for quick access to qualification tools.
Key highlights from the publication include:
- A simple definition of refundable tax credits.
- Links to check eligibility for major credits like EITC, CTC, AOTC, and PTC.
- Resources such as IRS social media channels (e.g., Twitter @IRSnews, Facebook, Instagram) for updates and events.
- Additional tools like “Earned Income Tax Credit and Other Refundable Credits,” “Child-Related Tax Benefits Comparison,” and “Refundable Credits News and Updates.”
This brochure is part of broader IRS efforts to ensure eligible individuals file returns, as many miss out on refunds by not filing. It’s available in English and Spanish versions, with related bundles like Publication 6011 for more comprehensive information.
What Are Refundable Tax Credits? Key Differences from Non-Refundable Credits
Refundable tax credits are amounts subtracted from your tax due, and if the credit exceeds your liability, the IRS refunds the difference—even if your tax bill is zero. This makes them especially beneficial for low- to moderate-income earners. In contrast, non-refundable credits only reduce your tax to zero; any excess is lost (though some may carry forward to future years).
For example, if you owe $1,000 in taxes but qualify for a $1,500 refundable credit, you’ll get a $500 refund. With a non-refundable credit, you’d owe nothing but receive no refund for the extra $500. IRS Publication 5075 stresses this advantage, urging taxpayers to claim these credits to “maximize your tax refund.”
Common Refundable Tax Credits Highlighted in IRS Publication 5075
Publication 5075 focuses on four major refundable credits, each with online tools to check eligibility. Here’s an overview based on 2025 tax year rules (applicable for filings in 2026):
1. Earned Income Tax Credit (EITC)
The EITC supports working individuals and families with low to moderate incomes. For 2025, maximum credits are:
- $664 for no qualifying children.
- $4,427 for one child.
- $7,316 for two children.
- $8,231 for three or more children.
Eligibility: Earned income below thresholds (e.g., $19,104 for single with no children up to $68,675 for married filing jointly with three or more children); investment income under $11,950; valid Social Security number; U.S. citizen or resident alien; not filing as married filing separately. Special rules apply for military members, clergy, and those with disabilities.
How to Claim: File Form 1040 or 1040-SR with Schedule EIC. Use the EITC Assistant on IRS.gov. Refunds for EITC claims are typically available by March 2, 2026, if filed early with direct deposit.
2. Child Tax Credit (CTC) and Additional Child Tax Credit (ACTC)
The CTC provides up to $2,200 per qualifying child under 17, with up to $1,700 refundable via the ACTC.
Eligibility: Child must be a U.S. citizen, national, or resident alien with a valid Social Security number; claimed as a dependent; meet relationship and residency tests (e.g., son, daughter, stepchild). Income limits phase out the credit for higher earners.
How to Claim: Include on Form 1040; attach Schedule 8812 if needed. ACTC refunds may be delayed until mid-February but available by March 2, 2026, with direct deposit.
3. American Opportunity Tax Credit (AOTC)
This education credit offers up to $2,500 per eligible student for qualified expenses like tuition and books, with $1,000 refundable.
Eligibility: Enrolled at least half-time in a degree program; no more than four years of higher education claimed; modified AGI of $90,000 or less ($180,000 for joint filers); no felony drug conviction.
How to Claim: File Form 8863 with your tax return. It’s available for the first four years of postsecondary education.
4. Premium Tax Credit (PTC)
The PTC helps offset health insurance premiums bought through the Marketplace.
Eligibility: Household income between 100% and 400% of the federal poverty line; not eligible for other coverage; not filing married filing separately (with exceptions for abuse).
How to Claim: Reconcile on Form 8962; advance payments can reduce monthly premiums.
Recent Updates for Refundable Tax Credits in 2026
For the 2025 tax year (filed in 2026), amounts have been adjusted for inflation. The One Big Beautiful Bill Act (signed July 2025) made some Tax Cuts and Jobs Act provisions permanent and increased certain limits, such as the adoption credit to $17,670 (up to $5,120 refundable). EITC and CTC refundable portions remain steady, with no major changes noted for the credits in Publication 5075. The IRS opened the 2026 filing season, emphasizing direct deposit for faster refunds.
Important note: Always check IRS.gov for the latest, as rules can change. Page last updated February 17, 2026.
How to Use IRS Publication 5075 and Claim Your Credits?
To get started:
- Download Publication 5075 from IRS.gov.
- Use the linked tools to verify eligibility.
- File electronically with direct deposit for refunds within 21 days (longer for EITC/ACTC).
- Consult a tax professional if needed, especially for complex situations.
By leveraging IRS Publication 5075, you can ensure you’re not leaving money on the table. Whether you’re a parent, student, or low-income worker, these refundable tax credits could boost your 2026 refund—file even if you don’t owe taxes! For more, visit IRS.gov or follow @IRSnews for updates.