is it possible to receive tax credits and pay taxes?

Patrick Bitsui: Are you in the UK or USA?? (You have posted this in the UK taxes section)UK Answer:Tax credits are actually a state benefit that some low income working families are able to get.despite it's name it's not tied into how much tax you pay. (how much tax you pay is dependant on what you earn and what tax code your on and that goes for everyone!)Working people pay tax on their income as normal, but IF they qualify they can also get a state benefit on top of earnings so yes, you WILL pay taxes anyway but will still be able to claim working tax credits IF your income is low enough.(think of it as, out of one hand and into the other)Check out HMRC for more info on tax credits....Show more

Rana Rudell: If the amount of the tax credit is equal or greater than your income tax, you don't have to pay. I don't know if the British government pays if your credits are more than your tax.

Pam Rampadarat: No, it doesn't. It means that your family circumstances! are such that the standard amount of tax you pay on your income leaves you with not quite enough for your needs.

Ira Porietis: in many circumstances, your refund is how lots you overpaid on your withholding. that is not unfastened money from the government, that is money you already sent the government in excess of your tax criminal duty. in case you have money taken out of your verify a week, and your deductions make it so which you have not have been given an earnings tax bill, then you definately're going to get the lower back the money that replaced into deducted.