What a common a simple question yet no answers on this.
So lets say that my for 2020 I ended up with the need to pay $20k taxes. My paycheck was set in a way that my witholdings were in line with my income, so by end of 2020 I own $0 to IRS because of paycheck witholdings.
With the $7500 credit, it would mean that IRS will threat this in a way that $20000 - $7500 = $12500 the amount of tax that I should pay and refound the $7500?
Thanks,
Botond
