If you have already decided on your income tax liability you can be able to reduce that liability by claiming one or more tax credits. It is important to note that they do not create a refund if they exceed your tax liability.

There are some nonrefundable credits which include:
a) the child tax credit
b) dependent care credit
c) adoption credit
d) education credits
e) retirement savings credit
f) credit for the elderly and disabled
g) mortgage interest credit
h) and D.C. first-time homebuyer credit.
As for refundable credits, they include:
- the additional child tax credit
- the earned income credit
- the health coverage credit.

At first:
• Check your last year's return
• Check if see if they qualify for the new energy tax credit.
• Collect your payment and expense records

Take into account:
• It is possible to claim a tax credit of $1,000 for each qualifying child under 17
• If you employed a babysitter you might qualify for a tax credit for the expenses.
• A tax credit of up to $10,960 may be available on your 2006 return for the qualifying costs of adopting a child under age 18.
• It is possible to get a refund of federal excise tax paid on long-distance
• The Energy Policy Act of 2005 created a number of limited tax credits for individuals
• The alternative motor vehicle credit includes credits for hybrid vehicles purchased after 2005.