Many Presidential Candidates offer Tax Credits as part of theyre plans, How much would a $1000 Tax Credit?

help someone, how much actual $ would/could an individual see as a result of having that.

Many Presidential Candidates offer Tax Credits as part of theyre plans, How much would a $1000 Tax Credit?
A tax credit directly reduces your tax liability dollar for dollar.





Most tax credits can only reduce your tax liability to zero. Once your liability is reduced to zero they have no further benefit. The various educational credits, the Child %26amp; Dependent Care Credit, Residential Energy Credit, and Child Tax Credit are all examples of standard non-refundable tax credits.





Some credits are refundable, such as the EIC and the Additional Child Tax Credit. That means that if your tax liability has been reduced to zero, any remaining credit will be paid to you.





Therefore the value of a tax credit depends upon your tax liability and whether or not the credit is refundable. So a non-refundable $1,000 tax credit is worth $1,000 to you if your tax liability is more than $1,000 and nothing if your tax liability has already been reduced to zero. A refundable $1,000 tax credit would always be worth the full $1,000.
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Reply:A $1000 tax credit is exactly that, $1000 in extra money to help pay bills or like most people, spend on stuff they don't need.
Reply:The purpose is not to help anybody. It is simply a part of an economic stimulus plan. They figure if everyone spends an extra $1000, it will cause an upswing in the economy. If the economy was doing good we wouldn't see a dime.