Jorge has a tax liability of $2,100 in the 2021 tax year. During that year, Jorge has a tax credit worth $3,500. Which of the following is most TRUE: Group of answer choices a)Jorge will receive a tax refund of $1,400 because tax credits are always refundable. b)Jorge will not receive a tax refund because tax credits are never refundable. c)Jorge will receive a tax refund of $1,400 if his tax credit is refundable. d)Jorge will not receive a tax refund because tax credits only affect taxable income.
Jorge has a tax liability of $2,100 in the 2021 tax year. During that year, Jorge has a tax credit worth $3,500. Which of the following is most TRUE: Group of answer choices a)Jorge will receive a tax refund of $1,400 because tax credits are always refundable. b)Jorge will not receive a tax refund because tax credits are never refundable. c)Jorge will receive a tax refund of $1,400 if his tax credit is refundable. d)Jorge will not receive a tax refund because tax credits only affect taxable income.
Chapter17: Tax Practice And Ethics
Section: Chapter Questions
Problem 26P
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Question
Jorge has a tax liability of $2,100 in the 2021 tax year. During that year, Jorge has a tax credit worth $3,500. Which of the following is most TRUE:
Group of answer choices
a)Jorge will receive a tax refund of $1,400 because tax credits are always refundable.
b)Jorge will not receive a tax refund because tax credits are never refundable.
c)Jorge will receive a tax refund of $1,400 if his tax credit is refundable.
d)Jorge will not receive a tax refund because tax credits only affect taxable income.
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