Non-Refundable Tax Credit

Posted in Finance, Accounting and Economics Terms, Total Reads: 240
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Definition: Non-Refundable Tax Credit

Non-Refundable Tax Credit is a type of tax credit which can reduce tax owed to 0$ but cannot take you towards tax refund. In simple words if you owed taxes worth +X$ and you get a tax credit of X+100$. This would make your tax owed 0$ but the extra 100$ would not be refunded. If it were a refundable credit you would have got these 100$ as credit or refund from the government. 

A tax credit is applicable to the amount of tax that is owed by the taxpayer after all subtractions have been made from his or her taxable income.

There is also a partially refundable tax credit which refunds or credits a fixed percentage of tax you owe, hence the name partial e.g. 30% 


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