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Deductions & credits
Beyond that, most energy credits are applied, whether or not you use Itemized or Std deduction.
At least if you are talking about a Federal tax return....States that have a separate energy credit selection may differ.
Energy credits do tend to be non-refundable...meaning you must actually have a Federal tax liability to use them in a particular year. Thus, even if your assessed tax is zero for all your income this year, the credit will not be used this year.....but might carry-over to be used next year.
(I haven't checked recently to see if the carry-over can be used for all the energy credits.....or just some of them)
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
‎July 26, 2024
6:24 AM