Do I have it correctly understood that the federal energy tax credit works
it is a "non-refundable" credit (of 30% of a new boiler's cost and up to
$1500), so that if the homeowner didn't pay $1500 in tax then you don't get
that $1500 credit. I haven't worked this year, so I owe no fed tax.
From past experience, I know what you mean by "see if they all agree". But I
did call anyway and the person who answered did say: the credit can only
reduce your tax bill - you can't benefit at all from it if you owe no taxes.
So that differs from, say, huge corporations which might pay little or no
taxes but can still benefit from government handouts in return for exporting
jobs to China or just directly wrecking the economy.
By the way, it seems that these days whenever anybody answers at IRS, they
first give their ID number. I'd suppose that allows them to track anyone who
is giving out a lot of incorrect answers.
Are you saying you are not filing taxes this coming year? Consult your
tax advisor would be my advice. Even if I " owe no fed tax" I still
want to claim my deductions for mortgage interest, etc. What about
Look-see here for energy tax credits and how they work.
Select HVAC - boilers
Given that, they would still need to meet the efficiency rating.
"Must be an existing home & your principal residence. New construction
and rentals do not qualify."
Last year, my new garage door qualified. This year a new HVAC unit is
ready for the coming tax filing.
As I mentioned, speak with your tax advisor.
But he's talking about federal income tax and the energy tax credit,
not state. And regardless, if he has NO income, then how can he have
state income tax due either? There is no point to him filing a
federal return and taking mortgage interest deductions if he has no
income. You can't deduct from what you don't have. If you have no
income, no withholding, no tax liability, then there is no need to
file a return.
Not sure what you mean by "non-refundable", but otherwise my
understanding agrees with yours. I'm in a similar situation, but I
have a couple of IRA-type accounts from which I can withdraw
not-yet-taxed money without penalty (in one case because I'm old
enough, in the other case because it's an inherited IRA). So I am in
the process of figuring how much I need to withdraw so that I owe
$1500 in tax so that I get the tax credit resulting from installing
metal roofing this year.
Unlike some deductions, you cannot carry it forward to a future year.
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