What is the foreign tax credit?
The foreign tax credit is a type of nonrefundable tax credit, which means that the credit can reduce your tax liability to zero, but not provide you a refund. This tax credit is applicable to taxpayers who have foreign sourced income that may have already been taxed in another country. This credit prevents taxpayers from being “double taxed”.
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You might also be interested in... What is a nonrefundable tax credit?
A nonrefundable tax credit is one of the two types of personal tax credits that individual taxpayers can qualify for. A nonrefundable tax credit means you get a refund only up to the amount you owe. As you can see in the example below, even though the taxpayer has applicable credits of $150, their taxable...
What is the adoption credit?
The adoption credit is a type of nonrefundable tax credit. The adoption credit exists for parents who are adopting a child. Basically, taxpayers can receive a credit for expenses incurred to adopt a child, such as legal fees, court fees, travel fees, etc. However, medical expenses incurred for adopting a child are not eligible expenses.
What is the elderly and permanently disabled credit?
This is a type of nonrefundable tax credit. You must be 65 or older to qualify, or you can be below 65 on and be on permanently and total disability. This tax credit is very difficult to qualify for, so be sure to fully understand the tax code related to this credit.
What is a nonrefundable tax credit?
A nonrefundable tax credit is one of the two types of personal tax credits that individual taxpayers can qualify for. A nonrefundable tax credit means you get a refund only up to the amount you owe. As you can see in the example below, even though the taxpayer has applicable credits of $150, their taxable...
What is the adoption credit?
The adoption credit is a type of nonrefundable tax credit. The adoption credit exists for parents who are adopting a child. Basically, taxpayers can receive a credit for expenses incurred to adopt a child, such as legal fees, court fees, travel fees, etc. However, medical expenses incurred for adopting a child are not eligible expenses.
What is the elderly and permanently disabled credit?
This is a type of nonrefundable tax credit. You must be 65 or older to qualify, or you can be below 65 on and be on permanently and total disability. This tax credit is very difficult to qualify for, so be sure to fully understand the tax code related to this credit.
