Warning: I am British, not American so getting used to the tax system here, also not a tax expert at all... also I might use incorrect language I apologize...
Background - I pay most of my taxes Fed & State in my pay check. When it comes to the end of the year I owe them a little or they owe me a bit...
Reading up on the Federal tax incentive, it says something along the lines of “this is a non refundable tax credit”, meaning I think, “dont expect a check for $7500” (assuming you deliver before end of 2018 - I did).
So my question, how exactly do I receive this tax credit? Does it just reduce my taxable income by $7500, and therefore if I overpaid through my paycheck I will get a refund? Or, if I am already “pre-paying” my tax and I zero out at end of year, am I out of luck? ... Confused
Background - I pay most of my taxes Fed & State in my pay check. When it comes to the end of the year I owe them a little or they owe me a bit...
Reading up on the Federal tax incentive, it says something along the lines of “this is a non refundable tax credit”, meaning I think, “dont expect a check for $7500” (assuming you deliver before end of 2018 - I did).
Depending on your liability and other tax credits you take, you may not see the full tax savings of the tentative credit you calculate on Form 8936. This is because the credit is a nonrefundable credit. Nonrefundable tax credits cannot reduce your tax bill below zero and also reduce your tax bill for a number of other credits taken before reducing the remaining tax bill for your plug-in electric motor vehicle credit.
So my question, how exactly do I receive this tax credit? Does it just reduce my taxable income by $7500, and therefore if I overpaid through my paycheck I will get a refund? Or, if I am already “pre-paying” my tax and I zero out at end of year, am I out of luck? ... Confused