Gizmotoy
Active Member
Probably. There's an important distinction. Did you actually have a negative tax bill, or did you overpay your taxes during the year such that you got a refund? For example, you withheld $20k but your total tax bill came out to $15k, so you got money back.A few years ago, I had a negative tax bill (i.e., a refund for more than I paid in taxes) because of multiple kids in college and the education tax credits. Is this credit different in that it's capped at your tax liability?
If you actually owed no tax (or had negative, if that's possible... carryover from previous year, maybe?), the credit is worthless. If the tax you owe is greater than $0 and less than $7500, you get whatever you owed back. If you owe more than $7500, you get the full amount. If that results in you getting a refund for overpayment, you'll get a refund.