Investor Glossary-non-refundable tax creditInvestor Glossary-non-refundable tax creditInvestor Glossary-non-refundable tax creditInvestor Glossary-non-refundable tax creditInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Non-Refundable Tax Credit

The HTML to link to this page
 

A non-refundable tax credit is a credit that can reduce the amount of an individual's tax liability (i.e. amount of income taxes owed) to zero but cannot exceed the total amount of income taxes owed. For example, if an individual has a non-refundable tax credit of $5,000 and a tax liability of $3,000, the IRS will not refund the remaining $2,000 of the non-refundable tax credit. The maximum non-refundable tax credit allowable in this example is equal to the individual's tax liability of $3,000. Using a different example, if a non-refundable tax credit is $5,000 and the tax liability is $6,000, the individual can use the entire $5,000 of the non-refundable tax credit. This reduces the individual's tax liability to $1,000. Examples of non-refundable tax credits include alternative motor vehicle credit, child tax credit, residential energy credit, child and dependent care credit, retirement savings contribution credit and foreign tax credit.



Rate this Non-Refundable Tax Credit definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: balance sheet, Zero Cost Collar, LIBOR, implied volatility, wholly-owned subsidiary, inflation, per diem, Key Rate Duration, open position, limit order, 144a, ex-dividend, covered put, EBITDA, option premium, retained earnings, annual return, quality assurance, diluted share, labor relations, ex-dividend date, 401a, average price per share, deferred revenue, 1035 exchange, risk management, in escrow, command economy, required rate of return, liquidity ratio, minority interest, cancelled check, current ratio, reverse mortgage, FTSE, 1031 exchange, real GDP, FICO score, stock split, irrevocable trust, margin rate, APR, VIX, phantom income, stock market close, deferred tax, dividends payable, debt service coverage, class C shares


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2015 Investor Glossary - All rights reserved - Terms of Use