Cassy reports a gross tax liability of $1,130. She also claims $530 of nonrefundable personal credits, $765 of refundable personal credits, and $330 of business credits. What is Cassy's tax refund or tax liability due after applying the credits? (Round your answer to the nearest whole dollar amount.)

Question

Quizplus · Accepted Answer

First, we need to calculate Cassy's total credits: 
$530 (nonrefundable personal credits) + $765 (refundable personal credits) + $330 (business credits) = $1,625 total credits

Then, we need to subtract the total credits from the gross tax liability: 
$1,130 (gross tax liability) - $1,625 (total credits) = -$495

A negative result means that Cassy has a tax refund of $495. Therefore, the correct answer is D, $495 refund.

Cassy Reports a Gross Tax Liability of $1,130