Which of the following is not a nonrefundable tax credit?

The correct response indicates that all the listed credits are nonrefundable tax credits. Nonrefundable tax credits are designed to reduce the tax liability to zero but do not provide a refund if the credit exceeds the amount of tax owed.

The Child and Dependent Care Credit assists taxpayers in covering the expenses of childcare for children under age 13 while the taxpayer works or looks for work. However, if this credit surpasses the tax owed, the excess cannot be refunded.

The Child Tax Credit/Credit for Other Dependents is also a nonrefundable credit, providing support to families with qualifying children or dependents. Although there are aspects of this credit that can be refundable, the core of it was traditionally nonrefundable, meaning taxpayers cannot receive a refund beyond their total liability.

The Adoption Credit is intended to assist with costs associated with the adoption of a child. Similar to the others, this credit can reduce the tax liability but does not provide a refund of excess amounts.

Understanding the characteristics of these credits emphasizes their nonrefundable nature, allowing taxpayers to leverage them to mitigate their tax responsibilities without receiving cash back in scenarios that exceed tax liabilities.