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Deductions & credits
Thank you, indeed my tax liability is at 5.3k not 7.5k.
Ok so please bear with me...The instruction stated subtract line 21 from line 18 which does not give a negative number.
I spoke with someone in the IRS and told me that I am supposed to subtract the 7.5ev credit first, so even if my tax liability 16 is 5.3k, it will still amount to zero as there are no negatives.
The 1040 instruction to combine the 7.5 ev plus the child tax credit and subtract to the tax liability will get $8.2k (which is 2.2k more than 6k, so using the 7.5k first makes sense)
From what I understand, the child credit is refundable, and that 6k should still be intact, unless I am unable to subtract it because the tax liability is now zero.
Ok so if the child credit is intact and with the tax liability is gone, I also get the full tax withholding of 3k for a refund of 9k.
I also got the calculations (minus subtract the 7.5k first) from ROB CPA on YouTube (he did the same 1040 operation)
I know for this tax year I should approximately get $4500 in refund so it doesn't make sense that I buy a car and it has a negative effect on it. I messed around with my TurboTax and entered some EV cars and it did give the return a boost (but it's based off old calculations and rates)
Thank you for this, i apologize for not grasping the earlier concepts that you were trying to convey.