Nonrefundable tax credits
A)only offset a taxpayer's tax liability in the current year.
B)may only be used if the taxpayer is receiving a refund.
C)can be carried back tone year 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 reduce a taxpayer's tax liability to zero in the current year; they cannot result in a refund or be carried forward or back.

Nonrefundable Tax Credits