Which of the following refers to a tax credit that can reduce an individual's assessed tax below zero?

Question

Quizplus · Accepted Answer

Refundable tax credits can reduce the amount of tax owed to the government to below zero, resulting in a refund to the taxpayer. Nonrefundable tax credits can only reduce the tax owed to zero, deductions lower taxable income rather than tax owed directly, and a negative effective tax rate is a broader concept that could result from various factors, including refundable credits, but is not a specific mechanism like a refundable tax credit.

Which of the Following Refers to a Tax Credit That