Forum
Forum Navigation
What is the difference between refundable and nonrefundable ERC credits?
#1 · July 6, 2023, 4:55 pm
What is the difference between refundable and nonrefundable erc credits, and how these credit types can impact my tax liability and possible refunds?
#2 · July 7, 2023, 9:57 am
Tax credit categories with varied features include refundable credits and nonrefundable credits. Refundable credits have the potential to provide a refund by lowering the tax obligation to zero and returning any surplus to the taxpayer. On the other hand, nonrefundable credits can only lower the tax burden to zero, and any excess is not repaid. Nonrefundable credits can assist in reducing tax liabilities, but if their value exceeds the tax due, there is no direct reimbursement.
