Question

David and lilly fernandez have determined their tax liability on their joint tax return to be $2,000. they have made prepayments of $775 and also have a child tax credit of $2,000. what is the amount of their tax refund or taxes due?

Answer 1

Start with $2,000 in taxes owed subtract $775 for prepayments to get $1,225 in taxes still owed. Subtract another $2,000 for the child tax credit, resulting in a negative liability of $775. This equates a tax refund of $775.