This year Luke has calculated his gross tax liability at $2,020. Luke is entitled to a $2,730 nonrefundable personal tax credit, a $1,665 business tax credit, and a $710 refundable personal tax credit. In addition, Luke has had $2,575 of income taxes withheld from his salary.

Question

Business

Chen

13 May, 22:57

This year Luke has calculated his gross tax liability at $2,020. Luke is entitled to a $2,730 nonrefundable personal tax credit, a $1,665 business tax credit, and a $710 refundable personal tax credit. In addition, Luke has had $2,575 of income taxes withheld from his salary.

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Answers (1)

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Carsen Holland · Answer 1

net refund value for Luke = $3285

Explanation:

given data

gross tax liability = $2,020

nonrefundable personal tax credit = $2,730

business tax credit = $1,665

refundable personal tax credit = $710

income taxes withheld from salary = $2,575

solution

we get here Luke's non refundable credit that is

Luke's non refundable credit = $2730 - $2020

Luke's non refundable credit = $710

so

net refund value for Luke will be here

net refund value for Luke $710 + $2575

net refund value for Luke = $3285

so we can say that it is includes the refundable value and the unused business tax value which gets carried over