Non-refundable tax credits should be used first to reduce tax because they cannot be carried forward to reduce taxes in later years.

Name: Non-refundable tax credits should be used first to reduce tax because they cannot be carried forward to reduce taxes in later years.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Non-refundable tax credits are only applicable to the current tax year and cannot be carried forward or applied to previous tax years. Therefore, it is best to use them first to reduce the tax liability for the current year.

Non-Refundable Tax Credits Should Be Used First to Reduce Tax