Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : The Heavily HEAVILY moderated Kamala Harris thread -- Ignore unavailable to you. Want to Upgrade?

To: Sam who wrote (279)	8/31/2024 2:44:26 PM
From: Doo	Respond to of 362

Actually I think I mixed definitions in that question, but the question was generally correct. A refundable tax credit is one that can be refunded in part or whole to the taxpayer regardless of whether the tax liability in the tax year is less than the total available credit under the code. A non-refundable credit is available only to the extent of the tax liability in the tax year. So, if a taxpayer has a 2025 (assuming it were in effect) pre-credit tax liability of $18k, and the credit is $25k and refundable, then the taxpayer has $0 tax liability for 2025 and gets a check for $7k. If the tax credit is non-refundable, that same tax payer has $0 tax liability but doesn't get a check for the balance of the credit.