Which of the following is considered a nonrefundable credit?

The Lifetime Learning Credit is classified as a nonrefundable credit because it allows taxpayers to reduce their tax liability to zero, but it cannot generate a refund if the credit exceeds the tax owed. This means that if your tax liability is less than the amount of the Lifetime Learning Credit, you will not receive the excess amount back as a refund.

In contrast, the Child Tax Credit, the Earned Income Credit, and the Premium Tax Credit all have refundable components. For instance, the Child Tax Credit has gone through phases where a portion of it is refundable, ensuring that even if a taxpayer does not owe taxes, they may still receive a payment. Similarly, the Earned Income Credit is primarily designed to benefit low-income working individuals by providing a substantial refund even when no taxes are owed. The Premium Tax Credit, associated with health insurance marketplaces, can also result in a refund if it exceeds the tax liability.

Thus, the distinction made in the question is crucial, as it highlights the nature of nonrefundable versus refundable credits, with the Lifetime Learning Credit being the only one in this list that strictly adheres to the nonrefundable classification.