refundable credit

refundable credit definition - business

refundable credit

An IRS tax credit payable to a taxpayer even though it may exceed the taxpayer's tax liability. The earned income tax credit for low-income working individuals and families is an example of a refundable credit.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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