4.5 Tax Obligations by Jenni Mejia https://padlet.com/jennimejia0619/r2nuowogb9nf Including at least 3-4 cited references to the reading, research and create of list of tax obligations that are impacted by tax credits and debt. Then imagine that you or someone you know personally has a specific tax credit as well as a specific amount of debt (you choose the amounts). What specific impacts do these have on your/his/her tax obligations? Explain and provide details. en-us 2017-04-28 18:23:02 UTC 2017-05-02 22:27:43 UTC hello@padlet.com Tax obligations impacted by tax credits and debt: jennimejia0619 https://padlet.com/jennimejia0619/r2nuowogb9nf/wish/169533059 "Tax credits are incentives that allows certain taxpayers to subtract the amount of the credit owed to the state" (Pg. 18). They can be given either to low earners as support or to someone who has already paid all their taxes in recognition. “Incentive tax credits may be used to encourage behaviors like investment or parenting" (Pg. 18). “A tax deduction reduces your taxable income. Your total deductions are subtracted from your taxable income in order to determine your total tax bill for the year" (Pg. 18).]]> 2017-05-02 19:45:17 UTC https://padlet.com/jennimejia0619/r2nuowogb9nf/wish/169533059 Specific impacts that tax credits can make: jennimejia0619 https://padlet.com/jennimejia0619/r2nuowogb9nf/wish/169533202 I owe $50 in taxes to the state but I had earned a $10 credit due to the fact that I have paid all of my taxes on time in the past, then I would only owe then $40 to the state because of the credit. 
I owe $100 but had a tax deduction of 10%, I would then owe $90, and with my $10 tax credit it would be $80. However, if I were to pay the whole original $100, a refundable tax credit would be issued to me. A refundable tax credit leftover taxes after the amount owed is paid, and that credit is returned to the taxpayer.

]]> 2017-05-02 19:45:56 UTC https://padlet.com/jennimejia0619/r2nuowogb9nf/wish/169533202 jennimejia0619 https://padlet.com/jennimejia0619/r2nuowogb9nf/wish/169556652 “However, some tax credits are refundable tax credits, meaning that if the credit exceeds the amount of taxes owed, the excess is returned to the taxpayer" (Pg. 18).]]> 2017-05-02 22:26:59 UTC https://padlet.com/jennimejia0619/r2nuowogb9nf/wish/169556652