I found some tips/answers like the one in the following link, but still have questions:
In my 2017, I filed head of household with 1 child dependent. My 1040 form shows the following:
Adjusted Gross Income $ 62,728.00
Taxable Income $ 43,553.00
Total Tax $ 4,824.00
Total Payments/Credits $ 8,663.00 (tax withheld from pay checks)
Amount to be Refunded $ 3,839.00
Effective Tax Rate 7.69%
My situation didn't really change much for 2018. Line 47 shows $5,824 and line 63 shows $4,824 (child tax credit was $1,000).
Will I be able to get the full EV $7,500 tax credit or pretty much what line 63 says ballpark?
If I do not qualify for the full credit, anything that I can do to increase it, maybe don't claim the child and let his mom do it?
Any help to clarify would be appreciated.
EV credit is a non refundable credit meaning it is limited by the amount of unused tax that it can offset. I said unused because the child tax credit is a higher priority credit and will be deducted from the tax before the EV credit is deducted.
The taxable income on $62,728 minus $18,000 standard deduction for head of household filing status would be $44,728 in 2018. The tax from the tax table would be $5,095.The child tax credit increases to $2000 for 2018 leaving $3,095 for the EV credit to offset. So you would get $3,095 of EV credit reducing your tax to $0. You would get back as a refund all of your tax withholding from throughout the year.
"So you would get $3,095 of EV credit reducing your tax to $0. You would get back as a refund all of your tax withholding from throughout the year."
Since my federal tax withheld was over $8,000, are you saying this in fact make me qualify for the full $7,500 EV tax refund??
I apologize but not an expert with these figures.
Last year my tax refund was 3,839.00 and since I'm thinking about this EV tax credit of $7,500, I would like to have a ballpark idea of how much refund I will get (again, roughly).
Link to 2017 form 1040: <a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/f1040.pdf">https://www.irs.gov/pub/irs-pdf/f1040.pdf</a>