This thread is posted weekly - please try to post all relevant US political content in here, such as news, updates, opinion articles, etc. Extremely significant events may warrant a separate topic, but almost all should be posted in here.

This is an inherently political thread; please try to avoid antagonistic arguments and bickering matches. Comment threads that devolve into unproductive arguments may be removed so that the overall topic is able to continue.

This thread is posted weekly - please try to post all relevant US political content in here, such as news, updates, opinion articles, etc. Extremely significant events may warrant a separate topic, but almost all should be posted in here.

This is an inherently political thread; please try to avoid antagonistic arguments and bickering matches. Comment threads that devolve into unproductive arguments may be removed so that the overall topic is able to continue.

I feel like I have a basic understanding of tax credits, but nothing so far as would make the most sense in what I want to know: I'm looking into buying a new car, and it looks like I can get a 7500 tax credit for the car I'm interested in buying. My understanding is that these credits are "non-refundable" meaning I don't actually get that money back, but how does it still work? I pay into the income tax (I know, I don't want to know the benefits of doing this vs not, it's just easier for me to pay more and get some back when the time comes), so I always get a refund. Would my refund be higher then because I get a credit on the taxes that I paid in? Or would it be the same and my tax liability would be reduced?

I need someone to explain this to me like I'm 5, please!