Skip to content

Refundable credit

In accounting, refundable credit means a tax credit whose excess over the tax due is paid out in cash. Because it does not depend on taxable income, it is generally accounted for outside ASC 740 — as a reduction of the related cost or as other income.

Layer
Lexicon
Defined in
Lexicon
Nearby
4

Not a rule

Tax law; ASC 740 scope judgment — not codified. US GAAP governs recognition, measurement and presentation — not the mechanics a bookkeeper uses to get there. Anyone citing a standard for this word is citing the wrong thing.

Every citation in this system, with the text we read and the date we checked it, is in US GAAP and where these rules come from.

What it is not called

Each of these is a real word for a different thing. Using it here is what makes a product read as though it was built by someone who has not done the work.

  • deduction
  • carryforward

Nearby in the catalog

No component names this concept outright. These are the ones in its part of the system, which is a weaker claim — but a component nothing links to is a component nobody finds.

Terms this one depends on

Also in Tax

Defined in Lexicon. This page is generated from that document, so the two cannot disagree.

Works in your QuickBooks Online or Xero file

Get your books closed every month

Lopifi is building AI bookkeeping that keeps your books closed on US GAAP as transactions happen, with a CPA review every quarter, for $200 a month. We’re not open yet.

$200/month when we open. No card now.