Going through turbo tax I can't get to a line item for biomass stoves. Furthermore all signs are pointing toward this credit isn't refundable anyway. Thank God this wasn't a factor buying this stove. Anyone else had an issue with this?? I doubt I will ever owe anything for federal tax returns. So this "credit" will just sit there seemingly forever.
EPA tax Credit BS?
- Thread starter GM80NY
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Yes I believe it is not refundable. But it isn't BS, it is a real credit. Turbo tax may not have it in their software though
It's not a refund. It's a credit applied against your tax burden. @GM80NY can you elaborate on how you will never owe any federal tax? Surely others would be interested as well.
Trevor Tahclep
Burning Hunk
So this credit can only be applied if after your taxes are done and you owe money. I always have a refund. This is what I meant.
That is not ho
Credits are added to any money you paid in. Then any amount over your actual tax due is refunded.
That is not how tax credits work.
Credits are added to any money you paid in. Then any amount over your actual tax due is refunded.
That is only if the credits are refundable. I don't believe this one is. But I could be wrong it may be
Here is a good link...
https://www.hpba.org/Advocacy/Biomass-Stove-Tax-Credit
If you took it in tax year 2020... When can you take it again? Can you use it twice if you swapped stoves in 2020 then in 2021 or 2022?
https://www.hpba.org/Advocacy/Biomass-Stove-Tax-Credit
If you took it in tax year 2020... When can you take it again? Can you use it twice if you swapped stoves in 2020 then in 2021 or 2022?
Not necessarily...you might get a larger refund unless you are already getting 100% back, in which case a non-refundable credit would not benefit you.
This is a good point to consider for those shopping for stoves. Take a close look at your tax situation before driving yourself crazy trying to find an eligible stove. You may find out there's no benefit to taking the credit.
This is especially true for those with kids as the expanded credits are wiping out federal tax liability for many people.
Trevor Tahclep
Burning Hunk
stoveliker
Minister of Fire
no, refundable means that even if your tax bill was zero, you get the credit.
nonrefundable means your tax bill will be lowered by the amount of the credit, UNTIL your tax bill is zero.
i.e. If your taxbill is zero, you won't get money for a nonrefundable credit.
If your taxbill is not zero (and regardless of whether your withholding during the year was too much (->refund) or not enough (->bill)), then that bill gets reduced by the (nonrefundable) credit.
In essence the nonrefundable credit gets deducted from the total amount you owe over the year, regardless of what you did with the withholdings during the year.
A refundable credit you get even if you owe zero taxes regardless of what you did with the withholdings during the year.
THe tax credit for 2021 was not refundable. I.e. if your tax bill (again, regardless of withholding numbers) is zero, you won't be benefited by this tax credit. But if you are paying taxes (even if you already paid more than you had to, and thus get a refund), you will be able to take advantage of the 2021 tax credit by increasing your refund (until your bill is zero).
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I have a $15,000 (2 EV credits )credit for tax year 2021. The EV credits are non refundable. I worked part time last year and money was deducted from my paychecks. Wehn I fill my taxes out if my total tax liability is less than 15K
stoveliker
Minister of Fire
meaning you will zero out your tax liability: when your tax bill is less than your credits, i.e. you'll get all your (already withheld) taxes back.
I asked about this recently in the stickied thread. I *believe* that TurboTax does not yet have the updated form, as you can enter this in TurboTax in the energy efficiency section but it only gives you the old $300 credit. I went all the way to the end where you file and it said the form that is used for this credit isnt updated and will be updated Feb. 2nd. I am hoping that after that form is updated, I can go back and do the credit again and it gives the full 26% credit.
For some reason my final posting did not "stick". Yes you are correct no matter how much was withheld on my income it all comes down to, was my total tax liability more than 15K?. If it was I get the full credit against my tax liability, if my tax liability was less than 15K then I only get the amount of my tax liability and the difference is the part that is nonrefundable. Let's say I was an optimist and withheld nothing from my paycheck last year and owed 15K tax liability, with the credits deducted, I owe IRS nothing. If on the other hand I withheld 15K off my paychecks the government owes me 15K.
A key thing to remember is the IRS is still processing returns from last year and they have warned taxpayers that refunds on this year's taxes could be at least one year late due to lack of staff and funding. Therefore, its even a better year than normal to owe the IRS money instead of waiting a long time to get a check. In my case I sold some mutual funds that had a lot of capital gains so that I end up owing.
I guess then
Thanks for the hope. I will see how this develops and will yell at you if you are wrong. J/K!
stoveliker
Minister of Fire
As the other poster said, wait for TurboTax to get the forms ready (and they are waiting for the IRS to finalize the forms).
jmb6420
Burning Hunk
Turbo tax has been saying that they would update the form for years. Even when I filed for the credit last year they never did update the form. When I called them and actually spoke with a person at turbo tax I was told that that form would not be available through turbo tax. The only way to get the credit would be to pay a professional preparer or do your own taxes the old fashioned way. I tried tax act, HR Block and several other online tax preparers and got the same result.
stoveliker
Minister of Fire
So just wanted to update Turbo tax does have a spot to put this info and I don't know if it was because their software updated since I posted this or because I called their customer service (free) and they got me there today. It added the entire amount to my refund so I must've been paying over that much still. Just wanted to let people know!
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