Nonrefundable Credits May Offset Tax Liability but May Not Result

question 35

True/False

Nonrefundable credits may offset tax liability but may not result in additional payments to the taxpayer.

---

Definitions:

Chattel Mortgage

A loan agreement where personal movable property is used as collateral for the loan, and the borrower retains possession of the property while repaying the loan.

Pledge

A commitment or security interest, especially in the context of a pledge of assets as collateral for a loan.

Deed of Trust

A legal document used in some states that involves a trustor, a trustee, and a lender (beneficiary), outlining the terms of a real estate transaction and placing the property as security for a loan.

Guarantor

A person or entity that agrees to be responsible for another's debt or obligations if the original party fails to meet their commitments.