Ive heard mixed messages about what the 7500 credit is. Some say it lowers your federal tax liability by $7500 but you don’t get a refund. Can anyone clarify? For arguments sake let’s say my federal tax liability is $0 will I get back $7500 tax refund from Uncle Sam? If that’s not indeed the case then how is everyone increasing their tax liability to get the maximum? Should I raise my dependents to 10 on my W4’s?