Cassy reports a gross tax liability of $1,000. She also claims $400 of nonrefundable personal 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?

Question

Quizplus · Accepted Answer

Cassy's net tax liability is $1,000 - $400 - $700 = -$300. Since the net tax liability is negative, Cassy is entitled to a refund of $300.

Cassy Reports a Gross Tax Liability of $1,000