So-call Tax Credits

[nthomasjr]

Am I the only one that's mad about the tax credits that everyone is getting, that we living off Social Security can't use? Solar panels, electric cars, etc. I put solar panels with battery back on my home with the promise of about $20,000 in tax credits to offset some of the $65,000 cost. Found out when I filed my taxes, I couldn't get those credits because I had no taxable income. If anyone really needs those credits it's us trying to live off a Social Security check.

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[GailL1]

Yes, some tax credits are refundable; others are NOT -  I guess you could go out and adopt a few younger kids and you would be "in the money" until you remember how much kids actually cost.  The child tax credit is refundable - course it is out of bounds for higher income folks.

From Investopedia:

DEFINITION of 'Refundable Credit'. A tax credit that is not limited by the amount of an individual's tax liability. Typically a tax credit only reduces an individual's tax liability to zero. Refundable credits go beyond this and so really can be considered the same as a payment.

NON-refundable tax credits are just like the name suggest - you offset tax that you are inline to pay.  Don't have any taxes - why would you need a tax credit?

On the aside, some state / local governments have some rebate programs for various things - like replacing toilets, shower heads, etc. to more water efficient models - but you have to get them quick cause the total amount runs out rather fast , and you must use their recommended types.  Sometimes they may offer financing of such at a low interest rate.  Again, offered for a limited time period.

As for solar panels - check with your electric utility to see if they offered any financial incentives or rebates

Energy.gov - Homeowner’s Guide to the Federal Tax Credit for Solar Photovoltaics

Details are always very important when it comes to doing anything to do with taxes, actually for anything else too.  Research in this day of 'google" and other search engines help to at least get a better understanding.  

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