What if the purchaser is eligible for an $8,000 credit but has total income tax liability of only $6,000?
This is where the “refundable” part of the 2009 tax credit comes in. If the eligible purchaser’s total tax liability is $6,000, the IRS will send the purchaser a check for $2,000. The refundable amount is the difference between $8,000 credit amount and the amount of the tax liability. ($8,000 – $6,000 = $2,000) Most taxpayers determine their tax liability by referring to tables that the IRS prepares each year.
Related Questions
- When must my age and years of service credit total at least 80 in order to be eligible for the retirement incentive?
- What if the purchaser is eligible for an $8,000 credit but has total income tax liability of only $6,000?
- If eligible for credit, can an employer apply it to previous or future years tax liability?