Comments on: Refundable Tax Credit and Non-Refundable Tax Credit http://thefinancebuff.com/2009/02/refundable-tax-credit-and-non-refundable-tax-credit.html like a friend telling you about money ... Wed, 17 Mar 2010 20:48:24 -0500 http://wordpress.org/?v=2.8 hourly 1 By: Robert Bruaer http://thefinancebuff.com/2009/02/refundable-tax-credit-and-non-refundable-tax-credit.html/comment-page-1#comment-3556 Robert Bruaer Thu, 04 Mar 2010 19:30:06 +0000 http://thefinancebuff.com/2009/02/tax-credit-refundable-and-non-refundable.html#comment-3556 Thanks for this article, it's great to get clarification on the order of nonrefundable and refundable credits. This is in regards to entry #33. My wife and I are going through the adoption process,and I just wanted to add that while the credit is nonrefundable, the balance that has not been refunded due to not having enough tax liability can be carried over for several years. Thanks for this article, it’s great to get clarification on the order of nonrefundable and refundable credits. This is in regards to entry #33. My wife and I are going through the adoption process,and I just wanted to add that while the credit is nonrefundable, the balance that has not been refunded due to not having enough tax liability can be carried over for several years.

]]> By: vanessa http://thefinancebuff.com/2009/02/refundable-tax-credit-and-non-refundable-tax-credit.html/comment-page-1#comment-3514 vanessa Tue, 23 Feb 2010 15:48:51 +0000 http://thefinancebuff.com/2009/02/tax-credit-refundable-and-non-refundable.html#comment-3514 I can't understand how will the tax credit help me if I owe nothing in back taxes. I've filed my taxes, and was disappointed to learn that even though I qualified for the tax credit for an energy effecient exterior door that I had installed, also a new heat pump furnace, that I would not get a refund for these items. In a nutshell, if you don't owe taxes, the credit doesn't help you at all. I was mislead into thinking that I was going to get this money back as a refund! This was never made clear, and I'm really upset about my big let down. I wanted that money. I can’t understand how will the tax credit help me if I owe nothing in back taxes. I’ve filed my taxes, and was disappointed to learn that even though I qualified for the tax credit for an energy effecient exterior door that I had installed, also a new heat pump furnace, that I would not get a refund for these items.

In a nutshell, if you don’t owe taxes, the credit doesn’t help you at all. I was mislead into thinking that I was going to get this money back as a refund!

This was never made clear, and I’m really upset about my big let down. I wanted that money.

]]> By: Jim (GraniteViewpoint) http://thefinancebuff.com/2009/02/refundable-tax-credit-and-non-refundable-tax-credit.html/comment-page-1#comment-3292 Jim (GraniteViewpoint) Sat, 23 Jan 2010 16:13:55 +0000 http://thefinancebuff.com/2009/02/tax-credit-refundable-and-non-refundable.html#comment-3292 Re: carry-forward of Residential Energy Credit (form 5695) According to the last page of the form 5695 instructions (for line 28), it looks like excess credit CAN be carried forward, at least until 2010,. Also, the source below indicates it can be carried forward for multiple years through at least 2016. http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=US37F&re=1&ee=1 Jim Re: carry-forward of Residential Energy Credit (form 5695)

According to the last page of the form 5695 instructions (for line 28), it looks like excess credit CAN be carried forward, at least until 2010,.

Also, the source below indicates it can be carried forward for multiple years through at least 2016.
http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=US37F&re=1&ee=1

Jim

]]> By: Peter Larsen http://thefinancebuff.com/2009/02/refundable-tax-credit-and-non-refundable-tax-credit.html/comment-page-1#comment-3283 Peter Larsen Fri, 22 Jan 2010 18:23:55 +0000 http://thefinancebuff.com/2009/02/tax-credit-refundable-and-non-refundable.html#comment-3283 I don't think that my situation has been addressed. I am newly retired and do not work for anyone, hence I will not receive a W-2 for 2009. I also do not yet collect Social Security, but plan to start collecting next January, if not sooner. My income comes from the sale of some investments and from rental income on property I own and manage. I consider the property a business. While it may appear that I have lots of money that is not the case. I have to carefully watch my expenses. Since I receive neither a W-2 nor Social Security it appears that I am one of the few folks that falls through the cracks on this particular government stimulus. Would you concur or, if not, could you please let me know what I've overlooked. Thank you. I don’t think that my situation has been addressed. I am newly retired and do not work for anyone, hence I will not receive a W-2 for 2009. I also do not yet collect Social Security, but plan to start collecting next January, if not sooner. My income comes from the sale of some investments and from rental income on property I own and manage. I consider the property a business. While it may appear that I have lots of money that is not the case. I have to carefully watch my expenses. Since I receive neither a W-2 nor Social Security it appears that I am one of the few folks that falls through the cracks on this particular government stimulus. Would you concur or, if not, could you please let me know what I’ve overlooked. Thank you.

]]> By: Kitty http://thefinancebuff.com/2009/02/refundable-tax-credit-and-non-refundable-tax-credit.html/comment-page-1#comment-3236 Kitty Mon, 18 Jan 2010 19:33:44 +0000 http://thefinancebuff.com/2009/02/tax-credit-refundable-and-non-refundable.html#comment-3236 We are retired and entitled to a $1500 credit for our furnace purchase. However, we owe no taxes. Is there a tax form we can fill out so we can use the credit next year? We are retired and entitled to a $1500 credit for our furnace purchase. However, we owe no taxes. Is there a tax form we can fill out so we can use the credit next year?

]]> By: Laura http://thefinancebuff.com/2009/02/refundable-tax-credit-and-non-refundable-tax-credit.html/comment-page-1#comment-3207 Laura Tue, 12 Jan 2010 21:45:18 +0000 http://thefinancebuff.com/2009/02/tax-credit-refundable-and-non-refundable.html#comment-3207 Re: Shane on November 19, 2009 I am confused about the adoption credit (even after reading your answer above). Is it similar to Shane's question? A. Total tax: 21,690 B. Total taxes withheld: 21,980 C. Nonrefundable adoption credit: (~$25,000 expenditure-$7500 employee refund is above max amount of $12,150) $12,150 Do we use the same equation? B - (A - C) = Return of $12,440? Am I totally off? I spoke to an IRS contact guy for 30 minutes and am still confused! Re: Shane on November 19, 2009

I am confused about the adoption credit (even after reading your answer above). Is it similar to Shane’s question?

A. Total tax: 21,690
B. Total taxes withheld: 21,980
C. Nonrefundable adoption credit: (~$25,000 expenditure-$7500 employee refund is above max amount of $12,150) $12,150

Do we use the same equation? B – (A – C) = Return of $12,440?

Am I totally off? I spoke to an IRS contact guy for 30 minutes and am still confused!

]]> By: Tom http://thefinancebuff.com/2009/02/refundable-tax-credit-and-non-refundable-tax-credit.html/comment-page-1#comment-3189 Tom Sun, 10 Jan 2010 15:27:09 +0000 http://thefinancebuff.com/2009/02/tax-credit-refundable-and-non-refundable.html#comment-3189 I did not earn any money in 2009. Do I still file a tax return? I did not earn any money in 2009. Do I still file a tax return?

]]> By: Donna http://thefinancebuff.com/2009/02/refundable-tax-credit-and-non-refundable-tax-credit.html/comment-page-1#comment-3121 Donna Sun, 03 Jan 2010 16:15:28 +0000 http://thefinancebuff.com/2009/02/tax-credit-refundable-and-non-refundable.html#comment-3121 I bought a house this year and I was wondering if the tax credit is a credit or do you get the money? I bought a house this year and I was wondering if the tax credit is a credit or do you get the money?

]]> By: Christian http://thefinancebuff.com/2009/02/refundable-tax-credit-and-non-refundable-tax-credit.html/comment-page-1#comment-3048 Christian Fri, 18 Dec 2009 09:58:19 +0000 http://thefinancebuff.com/2009/02/tax-credit-refundable-and-non-refundable.html#comment-3048 Hi.. i have a questions that i dont seem to get answer anywhere else in the internet. i am 22 years old and going to college, im thinking of applying for the american opportunity tax credit.. 2,500 total only 1,000 can be refunded to student... i do meet all the requirements.. but on the 2009 8863 form.. the american opportunity tax calculation is divided into two areas... refundable and nonrefundable.. and after doing the calculations i got to a line that said "if you were under age 24 at end of year AND meet all the conditions you cannot take the refundable cradit and tells me to move on to the non-refundable part... i was wondering since i never pay taxes.. i mean i do through work and like i just bought a big LCD tv.. what i mean is every year i file taxes i always get money back... my question is i fill out the non-refundable part as it says there.. will i get any money added to my refund at the end of the year... cuz ive been filin since i was 19 and always get the same average money back around 500 cuz i dont have dependants or file any credits until this year that i want to get that credit. plz help sorry i made it so long Hi.. i have a questions that i dont seem to get answer anywhere else in the internet.
i am 22 years old and going to college, im thinking of applying for the american opportunity tax credit.. 2,500 total only 1,000 can be refunded to student…
i do meet all the requirements.. but on the 2009 8863 form.. the american opportunity tax calculation is divided into two areas… refundable and nonrefundable.. and after doing the calculations i got to a line that said “if you were under age 24 at end of year AND meet all the conditions you cannot take the refundable cradit and tells me to move on to the non-refundable part… i was wondering since i never pay taxes.. i mean i do through work and like i just bought a big LCD tv.. what i mean is every year i file taxes i always get money back… my question is i fill out the non-refundable part as it says there.. will i get any money added to my refund at the end of the year… cuz ive been filin since i was 19 and always get the same average money back around 500 cuz i dont have dependants or file any credits until this year that i want to get that credit.
plz help sorry i made it so long

]]> By: Bo http://thefinancebuff.com/2009/02/refundable-tax-credit-and-non-refundable-tax-credit.html/comment-page-1#comment-3024 Bo Sun, 13 Dec 2009 19:49:56 +0000 http://thefinancebuff.com/2009/02/tax-credit-refundable-and-non-refundable.html#comment-3024 We don't make enough money to pay any income taxes. But we do pay the payroll taxes. We are planning to purchase a $4,500 wood stove. Our county has a program to encourage replacement of old wood stoves, and we qualify for a $3,000 rebate. Will we recieve the $1,500 tax credit for the remainder of our purchase? In other words, is the wood stove tax credit refundable? Thanks! We don’t make enough money to pay any income taxes. But we do pay the payroll taxes. We are planning to purchase a $4,500 wood stove. Our county has a program to encourage replacement of old wood stoves, and we qualify for a $3,000 rebate. Will we recieve the $1,500 tax credit for the remainder of our purchase? In other words, is the wood stove tax credit refundable?

Thanks!

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