2007-05-01 22:49:24 · 3 answers · asked by locationvariable 1 in Business & Finance ➔ Taxes ➔ United States
It's not whether you got a refund - that just means that you overpaid - but whether you had any tax liability for the year. See the line on your return that says "TAX" - it's about 2/3 of the way down on the return. If that line is zero, then you can't take the credit, but if it's not zero, you might be able to take a credit up to the amount of your TAX.
2007-05-02 02:29:54 · answer #1 · answered by Judy 7 · 2⤊ 0⤋
getting a refund and owing tax can be two different things. If you paid in too much and got a refund, you could have still paid some tax. The Lifetime Learning Credit would be used to offset any tax that you would be paying. But as the guy above me said, it is not a refundable credit,, just used to offset tax you would be paying. So if you didn't earn enough to owe any tax at all,, the credit would do you no good. If you earned enough to owe at least some tax, the credit would be used,.
2007-05-02 08:22:05 · answer #2 · answered by Jo Blo 6 · 2⤊ 0⤋
It depends upon your tax liability, not whether or not you're getting a refund. If your tax liability is already zero, the LLC won't be worth anything. It is not refundable so it can only reduce your liability to zero, unlike the EITC which is refundable.
2007-05-02 08:07:42 · answer #3 · answered by Bostonian In MO 7 · 4⤊ 0⤋