@Nance59 wrote:
Thanks - we owed 700 so with the 932 "energy credit" we will get 232 refunded - I thought the energy credit would go towards what you "owe" and the rest would be carried over to next year? Not a refund....
@Nance59
The amount that you owe has nothing to do with how much of a credit you get. Nonrefundable credits are applied to your total tax liability for the year, not to the amount that you owe when you file your tax return. Your tax liability is the total tax on your income for the year, before applying any credits, withholding, or other payments. On your Form 1040 the total tax liability before nonrefundable credits is on line 18. All of your nonrefundable credits are subtracted from the amount on line 18, but they can't make it less than zero. If your total nonrefundable credits are more than line 18, then you can't get all of the credits, because they can't reduce your tax liability to less than zero.
There is no carryover of unused credits. If you can't get the maximum credit this year, the rest is gone.
