a tax credit mean you get the money refunded to you?

Question

talking about hope tax credit specifically

Answer 1

Only if it is a refundable credit. Not all credits are refundable. The Hope tax credit is not refundable.

Answer 2

If you have taxable income for the year so pay tax, then any non-refundable credit (Hope is one) is subtracted from the amount you owe - so if your withholding is greater than your taxes, yes, you'd get a bigger refund, and if you owe at the end, you'll owe that much less.

If you don't owe taxes in the first place, then the Hope credit won't change anything, since you have no tax to reduce.

Answer 3

There are two types of credits: Refundable and non-refundable. Non-refundable credits can reduce your tax liability to zero but below. Refundable credits can reduce your tax below zero and increase your refund.

The Hope Credit is a non-refundable credit. It can not cause you to get a refund unless you have withholdings.

Answer 4

Not Necessarily. It can mean that a certain item is deductible. Deductible items are often called Credits. For example, the Child Tax Credit is a deduction. It does not guarantee that you will get a refund. It adjusts the taxes that can be taken from your gross income.