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You just described a deduction. A credit is literally cash (assuming you have enough liability to cover it).
by plexicle 8y ago
You just described a deduction.
A credit is literally cash (assuming you have enough liability to cover it).
- Someone1234 8y ago[Deleted]
- plexicle 8y ago"A tax credit reduces the taxable amount of income you owe taxes on" is not the same thing as: "Tax credits reduce the amount of income tax you owe" The former is a deduction. The latter is a credit. It's really that simple.
- paxys 8y agoCertain tax credits apply even if you don't have enough liability. Like if you owe zero taxes for the year for some reason they will send you a check for the full credit amount. Not sure which category the EV one falls under though.
- 2trill2spill 8y agoYea your correct, theres refundable and non refundable tax credits, most are of the non refundable variety. It appears the ev tax credit is non refundable. [1]: https://www.libertytax.com/tax-lounge/electric-car-and-vehicle-tax-credit-what-to-know-and-how-to-claim-it/ https://www.libertytax.com/tax-lounge/electric-car-and-vehic...