I started working on my tax returns, more specifically the electric vehicle credit portion using Turbo Tax and I saw this note..
I always get a refund at the end of the year due to my business expenses and various other deductions. Am I going to lose my entire federal tax credit since I get a refund anyway?
If your credit is bigger than what you owe in taxes, the taxes you owe are reduced to zero, and the rest of your credit is lost.
Example: If Richard owe $375 in taxes, and you receive a credit of $500, the tax you owe is reduced to zero, and the remaining $125 is lost. You won't receive a refund for the remaining $125.
I always get a refund at the end of the year due to my business expenses and various other deductions. Am I going to lose my entire federal tax credit since I get a refund anyway?