Okay, here's the deal. My mom and dad just had some new windows put in their house and they were told that this would quailify them for the 30 percent tax credit. However, my mom found out that if you are to revieve a tax refund, then the tax credit is null and void. In other words, the tax credit is only valid for those that are going to have to pay additional income taxes to uncle sam at the end of the year. Am I correct?
Tax credit question, short and sweet I promise.
- Thread starter JerryT
- Start date
-
Active since 1995, Hearth.com is THE place on the internet for free information and advice about wood stoves, pellet stoves and other energy saving equipment.
We strive to provide opinions, articles, discussions and history related to Hearth Products and in a more general sense, energy issues.
We promote the EFFICIENT, RESPONSIBLE, CLEAN and SAFE use of all fuels, whether renewable or fossil.
- Status
No. The refund will just be larger. Unless she is getting everything she paid in this year back as a refund. Then she would get no additional for the credit.
Dakotas Dad
Minister of Fire
Your mother was told wrong. the credit has NOTHING to do with if you over pay your tax burden during the year, or have zero withholding, and pay lump sum at the end of the year. It is a "credit" directly against your tax burden.
ie: schedule A says your tax burden is $4500, and you are eligible for the full credit, $1500. Your tax burden now becomes $3000. If you had $4500 withheld during the year, you will now get a $1500 refund. If you had $6000 withheld, you will now get a $3000 refund.
ie: schedule A says your tax burden is $4500, and you are eligible for the full credit, $1500. Your tax burden now becomes $3000. If you had $4500 withheld during the year, you will now get a $1500 refund. If you had $6000 withheld, you will now get a $3000 refund.
- Status
Similar threads
- Locked
- Locked
- Locked
