This is a VITA TSE test question.. I see you cheating!
refundable
EIC is a refundable credit.
If you meet all of the rules to qualify for the homebuyers credit YES. The FTHBC is a Refundable credit and when the credit amount is more than your total income tax liability, the excess amount will be refunded to you.
yes
When any one has a credit amount that you could possibly receive it could be a good thing for you. Tax credit is a possible amount that you could qualify for IF you meet all of the rules that have to be met for that purpose. You can have a refundable credit amount or a nonrefundable credit amount. And it could be possible that either one could reduce the amount of your federal income tax liability once your federal 1040 income tax return is completed correctly down to the last line on the 1040 income tax return.
I need answer
It can be. The Child Tax Credit is 2 parts. The first is non-refundable and can only reduce the tax to $0. If the full amount of the credit (generally $1000 a qualifying child) is not used, it becomes the Additional Child Tax Credit and the amount of refundable credit is calculated on Form 8812. The amount that can be refundable will depend on the wages and other income on the return.
refundable
Yes. There are two kinds: refundable and non-refundable. If a non-refundable credit exceeds the taxpayer's liability, the excess credit is lost. If a refundable credit exceeds the taxpayer's liability, the excess is refunded to the taxpayer.
Yes it is.
EIC is a refundable credit.
If you meet all of the rules to qualify for the homebuyers credit YES. The FTHBC is a Refundable credit and when the credit amount is more than your total income tax liability, the excess amount will be refunded to you.
If you claim a tax credit that exceeds the tax owed, you can receive a refund for the excess credit if is a refundable credit:A refundable tax credit allows taxpayers to lower their tax liability to zero and receive a refund for the portion of the credit remaining.A nonrefundable tax credit allows taxpayers to lower their tax liability to zero, but not below zero. Any excess credit remaining is lost.The attached link discusses some refundable and nonrefundable credits. Once you get to the IRS website, type the specific credit you are curious about in the Search box to find out if it refundable or eligible for carryover.
On the federal 1040 income tax return a refundable credit means that if you do not owe any past due taxes, penalties, interest or legal government debt that is in the FMS offset refund program you will receive a refund of the amount of the refundable credit. The nonrefundable credit amounts if more than your federal income tax liability will only reduce your federal income tax liability to -0- ZERO on your 1040 federal income tax return and any amount of the nonrefundable over your income liability will NOT be refunded to you.
yes
Yes
When any one has a credit amount that you could possibly receive it could be a good thing for you. Tax credit is a possible amount that you could qualify for IF you meet all of the rules that have to be met for that purpose. You can have a refundable credit amount or a nonrefundable credit amount. And it could be possible that either one could reduce the amount of your federal income tax liability once your federal 1040 income tax return is completed correctly down to the last line on the 1040 income tax return.