For tax credits, what is the timing of a disallowance?

The timing of a disallowance for tax credits signifies that it prevents claims in the current year, which is why this answer is correct. When a tax credit is disallowed, it indicates that the taxpayer is not eligible to claim that credit on their current year tax return. This occurs due to various reasons, such as not meeting eligibility criteria or failing to provide necessary documentation. Since the disallowed credit stems from a review of the current tax situation, it directly affects claims for that specific year, preventing any benefit from being realized in the immediate filing.

Other aspects of this situation can include appeals and retroactivity, which do not apply in the same context. An appeal for a disallowance may be submitted, but it does not alter the immediate effect of the disallowance on the current year's claims. The possibility of retroactive claims or affecting future claims pertains more to different tax scenarios or resolutions rather than the immediate consequences of a disallowed credit for the tax year in question.