What MSRP to use for the new tax credit?

[RickLightning]

Ive spent hours searching and there actually isnt any mention of how refund/credit works. I would presume its just you need to owe over 7500 even if you prepaid it but I will search off site.

Thank you

How much you owe is irrelevant. How much you paid with paycheck withholding, or estimated tax, is irrelevant.

Your tax LIABILITY is all that matters. There are some credits that come off the total tax number, and that is your liability. If it equals or exceeds $7,500, you are all set. If it is less, you lose some of the existing non-refundable tax credit.

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[TaxmanHog]

Ive spent hours searching and there actually isnt any mention of how refund/credit works. I would presume its just you need to owe over 7500 even if you prepaid it but I will search off site.

Thank you

If you have straight up income taxes (not self employment taxes) in the numbers you site above, then you're probably good to go, but as a sanity check for you and hundreds observing this side-bar, there are limitations, see my yellow highlights, apply the concept to your personal data (DO NOT SHARE IT HERE), if you hit the "If zero or less, enter -0-" then you're losing some or all of the credit.

 

[Maquis]

If you have straight up income taxes (not self employment taxes) in the numbers you site above, then you're probably good to go, but as a sanity check for you and hundreds observing this side-bar, there are limitations, see my yellow highlights, apply the concept to your personal data (DO NOT SHARE IT HERE), if you hit the "If zero or less, enter -0-" then you're losing some or all of the credit.

This post (not the entire thread, just this post) should be made a sticky!

 

[jimfigler]

Ive spent hours searching and there actually isnt any mention of how refund/credit works. I would presume its just you need to owe over 7500 even if you prepaid it but I will search off site.

Thank you

If you make roughly $56,000 a year or more your tax liability should be higher than $7500 so you will get the full amount back. It has nothing to do with how much you normal get as a tax refund. That is very simplified but looking at tax tables it looks like $56k a year is close.

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