Nonrefundable tax credits
A)only offset a taxpayer's tax liability.
B)may only be used if the taxpayer is receiving a refund.
C)can be carried back two years and carried forward 15 years if they exceed tax liability in the current year.
D)allow the excess over the taxpayer's tax liability to be paid to the taxpayer.

Question

Quizplus · Accepted Answer

Nonrefundable tax credits can only offset a taxpayer's tax liability, meaning they can reduce the amount of taxes owed but cannot result in a refund for the excess credit.

Nonrefundable Tax Credits