In this specific instance, your tax liability would be reduced by the $7,500 credit. If the liability was $24,000, it would be reduced by $7,500 down to $16,500. You would then subtract the amount of tax withholding you had for the year to get the actual result of refund/balance on your tax return. The $7,500 would not be a separate refund. It will only reduce your tax liability so it very well may result in a refund.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
