stonelance
Member
This is a simplification, but for those that like math... normally, at tax time:
Tax you owe for the previous year = x
Tax you paid during the previous year = y
If x is more than y you owe the IRS x-y dollars
If y is more than x IRS owes you y-x dollars
If you have the tax credit:
Tax you owe for the year = x - 7500. If this is less than zero, then it is clamped to 0
Everything else is the same as above...
Tax you owe for the previous year = x
Tax you paid during the previous year = y
If x is more than y you owe the IRS x-y dollars
If y is more than x IRS owes you y-x dollars
If you have the tax credit:
Tax you owe for the year = x - 7500. If this is less than zero, then it is clamped to 0
Everything else is the same as above...