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Deductions & credits
maybe not to zero.....depends on the source of your income.
i.e., if you have Self-Employment income, the SE taxes (Medicare and SS) cannot be reduced by the credit.
If you look at your actual form 1040, you will see that the Energy Credit is applied (line 20) and subtracted BEFORE the SE tax is added in. The amount showing in line 20 will not exceed line 18 (if Child tax credits in line 19 is empty).
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
‎January 19, 2025
7:17 AM