EV credit of $7500

[lopezmariag]

It appears Turbotax is calculating my EV credit as a refund, vs credit.  I qualify for the $7500 Credit.  Prior to entering my EV, I owe fed tax of $1782.  After I enter my EV information and $7500, it shows I am receiving a "Refund" of $5540.  The credit should only cover taxes I owe, and not be a refund!

I can't get an answer from Turbotax on this issue.  Anyone else with this problem?

[VolvoGirl]

Look at your 1040 line 22 for total tax.  The EV credit will only reduce the tax to zero.  If your non-refundable credits reduce your tax to 0 you will get back all the withholding and payments and any Refundable Credits.  Sounds like you are getting your withholding back.  

[MinhT1]

The EV credit is non refundable. It can only reduce your liability to zero.

But once your liability is reduced to zero, your taxes withheld and your other fundable credits (such as the Earned income credit) become refundable to you, and this is your refund after the EV tax credit.

In other words, the refund of $5,540 is a refund of your taxes withheld and/or your refundable credits (such as the EIC), and not a refund of the EV credit.

[VolvoGirl]

So was the prior tax on line 22 about $7322?  And your withholding $5,540?  Leaving you a tax due of $1,782.  Then the EV credit wiped out the 7322 tax giving 0 tax.  And you get back all the withholding 5540.