As an update to this earlier post regarding these "non-refundable HVAC tax credits", here is a boiled down recommendation on how contractors should explain these tax credits to homeowners:
The HVAC tax credits are non-refundable tax credits which means that they can only be claimed if the taxpayer owes as much or more in taxes than the tax credits they are filing for. This can vary tremendously from taxpayer to taxpayer due to personal or household deductions, other credits, and the Alternative Minimum Tax so homeowners need to check with their tax advisor to determine whether they will most likely be able to qualify for a $1,500 tax credit.
Wednesday, April 1, 2009
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There have been several contractors that have asked, what if the homeowner is a retiree, whom will owe very little if any in taxes this upcoming year, will they receive the full benefit of the $1500 credit considering it is non-refundable?
ReplyDeleteThe short answer would be "no". However, it really is different for every individual because retirees could still have taxable income from other sources such as investments or other dividends so retirees should definitely check with their tax professional to see what their tax credit eligibility is likely to be.
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tax benefits that are available under the regular tax (like these tax credits) are reduced or eliminated. More information - Solar Federal Tax Credit
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