Hybrid tax credit bait and switch
#31
Re: Hybrid tax credit bait and switch
Well Lars-ss - you are completely wrong!!! I had finished my taxes in Turbo tax except for the car - I updated today and it let me enter it.... Before I entered the vehicle I had a REFUND ALREADY at $1137 - I added the car and guess what - my refund jumped to $2300..... Looks like I only got half for some reason or other..... Strange....
#32
Re: Hybrid tax credit bait and switch
Well Lars-ss - you are completely wrong!!! I had finished my taxes in Turbo tax except for the car - I updated today and it let me enter it.... Before I entered the vehicle I had a REFUND ALREADY at $1137 - I added the car and guess what - my refund jumped to $2300..... Looks like I only got half for some reason or other..... Strange....
#33
Re: Hybrid tax credit bait and switch
Well Lars-ss - you are completely wrong!!! I had finished my taxes in Turbo tax except for the car - I updated today and it let me enter it.... Before I entered the vehicle I had a REFUND ALREADY at $1137 - I added the car and guess what - my refund jumped to $2300..... Looks like I only got half for some reason or other..... Strange....
#34
Re: Hybrid tax credit bait and switch
Not that it needs to be said (as the only confusion seems to be on lars-ss's part), but using TurboTax my refund changed from $400 to $3000 after applying the hybrid credit (where in my case my tax liability is well in excess of my refund amount).
I'll echo what's been said:
A non-refundable credit can absolutely increase your refund (it just won't ever increase it past the amount of your withholding).
Non-refundable has a very specific meaning when it comes to tax credits, and its not ok to pretend it means "can't contribute to a refund".
I'll echo what's been said:
A non-refundable credit can absolutely increase your refund (it just won't ever increase it past the amount of your withholding).
Non-refundable has a very specific meaning when it comes to tax credits, and its not ok to pretend it means "can't contribute to a refund".
#37
Re: Hybrid tax credit bait and switch
I have a lot of mortgage interest, so that creates a huge deduction on my taxable income. However, after my dedeuctions, I still owe just under $16k in federal taxes on my income before any credits, which is reported on line 46 of my 1040. TurboTax then says I only get $650 in hybrid credit, so my tax liability ends up as $15,296, which is reported on line 63 of my 1040. This is the tax I owe the IRS, so you cannot say that I am not paying taxes this year or that my tax liability is zero. I have withholdings of over $26k (I forgot to change my W-4 after I bought my house) so I am getting a refund of $10k+.
So if my tax liability was ~$16k before credits, why am I not allowed to take the full $2600? I'm going to keep researching and updating my TurboTax software, maybe there is a bug in TurboTax on how it is calculating credits.
#38
Re: Hybrid tax credit bait and switch
As a famous golfer once said... "I am such a stupid!" After going over my 8910 very carefully, I finally noticed that I put a purchase and in-service date of Aug 1, 2007. Well, the TCH is only expected to get a 25% credit for that service date, so my credit was cut to $650. DOH! I fixed the date to 8/1/2006, and now I am getting the full $2600 credit.
So many people who have answered me are correct, but I will write two sentences that hopefully make this a bit more clear for others like me:
1) Your pre-credit tax liability (line 46 of your 1040) cannot go below $2600 if you want to receive the full credit, and your total tax liability (line 63) cannot go below $0.
2) If you have more withholdings than tax liability (meaning you get a refund), this has no bearing on your ability to take the tax credit.
So many people who have answered me are correct, but I will write two sentences that hopefully make this a bit more clear for others like me:
1) Your pre-credit tax liability (line 46 of your 1040) cannot go below $2600 if you want to receive the full credit, and your total tax liability (line 63) cannot go below $0.
2) If you have more withholdings than tax liability (meaning you get a refund), this has no bearing on your ability to take the tax credit.
#39
Re: Hybrid tax credit bait and switch
As a famous golfer once said... "I am such a stupid!" After going over my 8910 very carefully, I finally noticed that I put a purchase and in-service date of Aug 1, 2007. Well, the TCH is only expected to get a 25% credit for that service date, so my credit was cut to $650. DOH! I fixed the date to 8/1/2006, and now I am getting the full $2600 credit.
So many people who have answered me are correct, but I will write two sentences that hopefully make this a bit more clear for others like me:
1) Your pre-credit tax liability (line 46 of your 1040) cannot go below $2600 if you want to receive the full credit, and your total tax liability (line 63) cannot go below $0.
2) If you have more withholdings than tax liability (meaning you get a refund), this has no bearing on your ability to take the tax credit.
So many people who have answered me are correct, but I will write two sentences that hopefully make this a bit more clear for others like me:
1) Your pre-credit tax liability (line 46 of your 1040) cannot go below $2600 if you want to receive the full credit, and your total tax liability (line 63) cannot go below $0.
2) If you have more withholdings than tax liability (meaning you get a refund), this has no bearing on your ability to take the tax credit.
I'm glad it worked out for you
#40
Re: Hybrid tax credit bait and switch
I just re-read your comments to make sure I wasn't being completely stupid, and I still think I am correct. I think the two of you are making a big assumption about my tax return, which is that I have zero tax liability. I never said this was my situation, although I never made that crystal clear (maybe I should write tax laws! ) All I said was that I was getting a huge refund, and I quoted the fine print of the tax credit which says your liability cannot be reduced below zero.
I have a lot of mortgage interest, so that creates a huge deduction on my taxable income. However, after my dedeuctions, I still owe just under $16k in federal taxes on my income before any credits, which is reported on line 46 of my 1040. TurboTax then says I only get $650 in hybrid credit, so my tax liability ends up as $15,296, which is reported on line 63 of my 1040. This is the tax I owe the IRS, so you cannot say that I am not paying taxes this year or that my tax liability is zero. I have withholdings of over $26k (I forgot to change my W-4 after I bought my house) so I am getting a refund of $10k+.
So if my tax liability was ~$16k before credits, why am I not allowed to take the full $2600? I'm going to keep researching and updating my TurboTax software, maybe there is a bug in TurboTax on how it is calculating credits.
I have a lot of mortgage interest, so that creates a huge deduction on my taxable income. However, after my dedeuctions, I still owe just under $16k in federal taxes on my income before any credits, which is reported on line 46 of my 1040. TurboTax then says I only get $650 in hybrid credit, so my tax liability ends up as $15,296, which is reported on line 63 of my 1040. This is the tax I owe the IRS, so you cannot say that I am not paying taxes this year or that my tax liability is zero. I have withholdings of over $26k (I forgot to change my W-4 after I bought my house) so I am getting a refund of $10k+.
So if my tax liability was ~$16k before credits, why am I not allowed to take the full $2600? I'm going to keep researching and updating my TurboTax software, maybe there is a bug in TurboTax on how it is calculating credits.