Cassy reports a gross tax liability of $1,140. She also claims $540 of nonrefundable personal credits, $770 of refundable personal credits, and $340 of business credits. What is Cassy’s tax refund or tax liability due after applying the credits?
$0 refund or taxes payable
$770 refund
$1,140 taxes payable
$510 refund
Answer : Cassy’s tax refund or tax liability due after applying the credits = $ 510 Refind
Working Notes for the above answer :
Cassy reports a gross tax liability of $1,140.
She also claims $540 of nonrefundable personal credits,
$770 of refundable personal credits,
$340 of business credits.
| Cassy’s tax refund or tax liability due after applying the credits | |
| Particular | Amount |
| Cassy reports a gross tax liability | 1140 |
| Less : | |
| nonrefundable personal credits | -540 |
| refundable personal credits | -770 |
| business credits | -340 |
| Total Refund | -510 |
