- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Get your taxes done using TurboTax
@s_c_1 - the non-refundable credits are on line 17 and 19. What 'non-refundable' means is that the tax on Line 16 can be reduced with non-redunfable credits, but the result (Line 22) can not be less than zero. it's that simple.
Let's say the tax on Line 16 is $2,000 and you have a non-refundable credit for $3,0000. Then Line 17 is going to be $2,000 (and not $3,000) because Line 22 can not be less than zero. In some cases the $1,000 can be carried over to be used the next year but in other cases (the EV credit for example), it's lost forever.
A 'refundable credit' reduces whatever is on line 22, even if it means the answer goes below zero (meaning you get a refund!). these credits get posted on lines 27a as well as 28-31.
note that the line numbers are the same on Form 1040 in both 2021 and 2022.
<<Would I receive an additional $2,000 back (totaling $3k tax refund because the $2,000 tax credit reduced my $10k tax liability to $8k)? Or will I receive no tax credit because I am already receiving a refund?>>
to answer your specific question, you;d receive the additional $2,000. You are correct that your tax liability (line 16) would be reduced by the tax credit with the remaining tax liability displayed on Line 22 - and since Line 22 is more than zero, you'd get the full benefit of the tax credit.