How are refundable and nonrefundable tax credits applied to your tax liability if together they exceed your tax liability.
For example, let's say my tax liability is $5000 and I have a $6000 refundable credit and $3000 nonrefundable credit. Is the nonrefundable tax credit applied first, lowering tax liability to $2000, and then I would receive a refund of $4000? Or, is the refundable credit applied first, and then I wouldn't receive the non refundable credit?
Thanks
