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 INCOME TAX CREDITS for INDIVIDUALS Attach to Your Tax 2019

2019-2025 Form

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[Music] hi i'm the tax geek and here are more of your taxes oversimplified in this video we're going to look at the difference between refundable and non-refundable tax credits in general a tax credit is something that reduces your tax liability dollar for dollar unlike adjustments and deductions which merely reduce your potential taxable income a non-refundable tax credit works only to reduce your tax liability and if the credit exceeds your tax liability any additional credit is lost what do we mean by tax liability well it's best described using the following example sally files is single and after she subtracts her standard deduction of twelve thousand five hundred fifty dollars from her adjusted gross income of twenty eight thousand dollars she has a taxable income of fifteen thousand four hundred fifty 450 consulting the tax table we see that her tax liability is 1 658 if she's attending graduate school and her expenses were 10 000 she would qualif

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