@AmeliesUncle, @NCperson, @Opus 17
Thank you all for your responses (and patience). Words really matter. There is a distinction between tax liability and tax owed. TT stated owed but meant liability, correct?
Based on your feedback, tax owed means that I owe the govt money because my withholding was less than what my liability was (amount you owe, line 37). In this case, if my liability was $10K and the withholding amount was $9500, I would owe $500, then I still could take advantage of the $2K tax credit and I would get a refund of $1500, correct?
Additionally, I would still receive a refund for the tax credit if my liability was $10K and the withholding amount was $10.5K, I would be due $500 refund, but I still could take advantage of the $2K tax credit and I would get a refund of $2.5K, correct?.
