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In the current year Scott has a calculated federal tax liability of $ 5,000 (before any tax credits or federal withholding tax). Scott had $
In the current year Scott has a calculated federal tax liability of $ 5,000 (before any tax credits or federal withholding tax). Scott had $ 6,000 withheld from his paycheck in the current year. Assume that Scott is entitled to only 1 of the 2 following tax credits: a. A $ 2,500 refundable tax credit, or b. A $ 2.500 non-refundable tax credit Which of the following is a true statement? Scott's federal tax refund will be the same whether he chose the refundable credit or the non-refundable credit. Scott's federal tax refund will be the lowered by $ 2,500 times his marginal tax rate. 2 of the other choices are correct statements. Scott's federal tax refund will be the higher if he chooses the refundable credit instead of the non-refundable credit. Scott's federal tax refund will be the lower if he chooses the refundable credit instead of the non-refundable credit
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