Discussion Tax credits may be refundable or nonrefundable. Discuss the difference between these and provide an...

Discussion

Tax credits may be refundable or nonrefundable. Discuss the difference between these and provide an example of each.

Solutions

Expert Solution

Solution

Non-refundable tax credits are those for which a person can get refund only to the limit the amount the person owes as taxes. Thus the non-refundable tax credit cannot create a refund.

On the other hand in case of refundable tax credits not only the tax owed can be reduced, but also in case if still, credits are pending they can be taken as refund too

For example, if you have an $800 tax credit of earned income tax credit, (which is a refundable tax credit) and you owe $200 only as tax, then the $200 tax will be settled by this credit, and you are entitled to leftover 600 as a refund.

Whereas on the other hand if you have $800 tax credit of adoption tax credit (which is a non-refundable tax credit)

and you owe $200 only as tax, then the $200 tax will be settled by this credit, and you will not be entitled to leftover 600 as a refund

If you are satisfied with the answer,please give a thumbs up

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

What is the difference between refundable versus nonrefundable credits? Name two or more refundable credits. What...

What is the difference between refundable versus nonrefundable credits? Name two or more refundable credits. What are the Criterion of American Opportunity Credit and Lifetime Learning Credit?

Tax Credits Briefly explain the difference between a refundable and a non refundable tax credit. Then...

Tax Credits Briefly explain the difference between a refundable and a non refundable tax credit. Then give three examples of tax credits and state if they are non refundable, refundable or partly refundable.

There are many different types of tax credits. Discuss one tax credit. Is it refundable or...

There are many different types of tax credits. Discuss one tax credit. Is it refundable or non-refundable. Please make sure you each discuss a different type of tax credit. **The answer is 1 page or less** **You must have a citation to either the text book or to another independent source. Please cite your source using either the APA or the MLA style. Internet sources such as those having "Fool", "opedia", "For Dummies" etc. are not acceptable**

Please explain the difference between a deduction and a credit. Which are the refundable credits? Why...

Please explain the difference between a deduction and a credit. Which are the refundable credits? Why do you think we have refundable credits?

What is the difference between a refundable versus non-refundable tax credit? Describe the various business-related and...

What is the difference between a refundable versus non-refundable tax credit? Describe the various business-related and individual tax credits available to taxpayers? What are some of the requirements and limitations related to these tax credits?

the American health care act issues refundable tax credits and eliminates the Obamacare subsidies. what do...

the American health care act issues refundable tax credits and eliminates the Obamacare subsidies. what do you expect to happen in the healthcare insurance market after the AHCA? Please explain your answer briefly in the language of economics by stating the shift of demand and/or supply curves in the healthcare insurance market.

Identify and discuss specific policy tools (taxes, carbon credits, tax credits, etc.) that would support building...

Identify and discuss specific policy tools (taxes, carbon credits, tax credits, etc.) that would support building retrofitting.

1.Think about the primary difference between tax avoidance and tax evasion. Define and provide an example...

1.Think about the primary difference between tax avoidance and tax evasion. Define and provide an example of each, and compare/contrast the typical consequences a taxpayer can expect from the Internal Revenue Service when s/he engages in either of the behaviors. In your response, identify the legal doctrines that the IRS typically uses to challenge a tax planning strategy. 2.Explain what is meant by an “implicit tax.” Define an implicit tax, and illustrate the concept by showing how a taxpayer’s marginal...

A. Discuss the difference between a disability and a handicap and provide examples. B. Describe the...

A. Discuss the difference between a disability and a handicap and provide examples. B. Describe the principles that a nurse should follow when he or she is caring for persons with disabilities. c. Identify factors that most likely to contribute to homelessness. d. Identify risk factors for suicide and how will the nurse assess a client at risk for suicide

Discuss the difference in accounting treatments between revaluation increments and decrements. Focus your discussion on the...

Discuss the difference in accounting treatments between revaluation increments and decrements. Focus your discussion on the difference in the accounting treatment for the tax effect of them.

Subjects