Tax conundrum

[First Electric01]

Just an interesting question? Anyone is filing this year's tax with EV and child tax credits. When I calculate my tax, I get a 7500 refund, which also makes my tax liability almost zero. That also reduced my child tax credit (2 kids) from 4000$ to 3000$, as my child tax credit is higher than the tax I owe. I know this is not a tax forum, but am I making any mistakes here? Or are any of you in the same boat?

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[Neil4Real]

Your remaining tax liability after the $7,500 isn’t enough to get the $2,000 per child. The $2,000 per is more than the taxes you owe. The “guaranteed” amount, regardless of your remaining tax liability, is $1,500 per child.

Sorry, mate.

 

[First Electric01]

Your remaining tax liability after the $7,500 isn’t enough to get the $2,000 per child. The $2,000 per is more than the taxes you owe. The “guaranteed” amount, regardless of your remaining tax liability, is $1,500 per child.

Sorry, mate.

Thanks a lot. i get it now. I appreciate your time replying this.

 

[Hduff]

Both the EV rebate and the child tax credit are nonrefundable credits. You only get as much rebate as your total tax liability. In TY 2021 the child tax credit was a refundable credit. That was for one year only.

 

[ChuckA]

This shows why you should run estimated numbers through a tax program prior to 12/31.

If you don’t have enough tax liability to absorb your non refundable tax credits, a Roth IRA conversion works to increase tax liability. This needs to be done on or before 12/31.

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