What is an example of a non-refundable tax credit?

The Lifetime Learning Credit is indeed an example of a non-refundable tax credit. Non-refundable tax credits can reduce one's tax liability to zero, but they do not provide a refund if the credit amount exceeds the tax owed.

With the Lifetime Learning Credit, eligible taxpayers can receive up to a specific dollar amount for qualified education expenses for themselves or their dependents, but if the credit exceeds the total tax due, they won't receive a refund for the difference. This characteristic is crucial in understanding how non-refundable tax credits function in relation to a taxpayer's overall tax situation.

In contrast, other options like the Child Tax Credit and Earned Income Tax Credit are refundable, meaning that if the credit amount exceeds the tax owed, the taxpayer can receive the excess as a refund. The Rehabilitation Tax Credit, while potentially non-refundable depending on specific circumstances, does not fit the standard definition in the same way as the Lifetime Learning Credit does in typical applications.