@ANGLER123 , non-Refundable credits can only reduce your tax liability and on the form 1040 they appear before determining your final tax liability. In contrast Refundable credits are similar to estimated/ withholding payments-- On form 1040 these credits appear after withholdings, estimated payments etc.
This in your particular case ( modified )-->
Tax computed --$5000; Taxes withheld --$1000; Non-Refundable Credit --$6000; Refundable Credit --$2000.
Taxes --- $5000
Less Non-Refundable Credit --- $6000
1. Final Tax Liability -- 0 ( 5000 Less 6000 but not less than zero )
2. Withholdings : --- $1000
3. Refundable Credits --- $2000
Final Refund --- $3000.
Does this clear up your query ?
