Cassy reports a gross tax liability of $1,000. She also claims $400 of nonrefundablepersonal credits, $700 of refundable personal credits, and $200 of business credits. What is Cassy's tax refund or tax liability due after applying the credits?

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Cassy's gross tax liability is $1,000. She can use the $400 nonrefundable personal credits and $200 business credits to reduce her tax liability to $400. The $700 refundable personal credits exceed the remaining liability, resulting in a $300 refund.

Cassy Reports a Gross Tax Liability of $1,000