The bipartisan Research and Development Tax Credit Expansion Act would expand the R&D tax credit for new and small businesses by doubling the refundability of the credit from $250,000 to $500,000, extending the credit to all small businesses with less than $10 million in annual revenue, and expanding how the
refundable credit is claimed against payroll taxes.
In this scenario, the combined tax liability would decrease by $500 because the $1,000 increase in the
refundable credit on the student's return outweighs the parents' loss of the $500 family tax credit (see the table "Dependent With Parents Over Credit Phaseout").
A student who claims the credit under this strategy is not entitled to any
refundable credit.
(34) While the EITC is not the only
refundable credit, it is
Refundable credit on qualified spend, including non-resident above- and below-the-line payroll
When a low-income, low-tax worker qualifies for a refundable tax credit, and the size of the
refundable credit is bigger than the worker's general income tax bill, the Internal Revenue Service (IRS) pays the worker for the difference between the tax credit and the general tax bill.
36B
refundable credit for coverage under a qualified health plan.
Skate rentals, $3 with $25
refundable credit card or cash deposit required per skate rental.
* If the amount of advance credit payments you get for the year is less than the tax credit you're due, you'll get the difference as a
refundable credit when you file your federal income tax return.
The
refundable credit is paid to the insurer to help fund the purchase of certain health insurance plans.
Another option is to make the CFTC and similar provincial credits a
refundable credit similar to the Children's Activity Tax Credit (CATC) in Ontario and the Active Families Benefit in Saskatchewan.
A
refundable credit, which offsets the costs of R&D even when the costs are greater than total tax liabilities, could help smaller, less-established companies with access to some funds or external financing to initiate R&D projects (HR 3156, as currently designed, is not refundable).
