Tax credit will serve me zero benefit?

[emj5150]

I'm not a tax expert, but I started digging into the Clean Vehicle Tax Credit to learn more. My wife and I file jointly and we have a farm which allows us a lot of tax benefits. We pay in the max taxes, and always receive a refund in the Spring. After reading this, can I conclude that this tax credit will serve me zero benefit?

Q7. Is the new clean vehicle credit refundable or able to be carried forward? (added December 29, 2022)
A7. No. The new clean vehicle credit may only be claimed to the extent of reported tax due of the taxpayer and cannot be refunded or carried forward.

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[Donald Stanfield]

You're wrong. Your tax liability and whether or not you get a refund are two different things. If you get a refund because you pay extra taxes throughout the year that doesn't change your tax liability. The only way you wouldn't qualify for a credit would be if you had less than the amount of the credit as your tax bill.

If you payed 20K dollars in taxes for example for the year, you would just get a higher refund with the tax credit.

 

[Craigins]

If you pay the "max taxes" you are fine.

Those words mean if you pay less than the credit amount (in taxes not what they give back to you) do you still get the full amount, or can the extra amount roll over to next year.

 

[emj5150]

Thanks for clearing that up. I clearly didn't understand, but now I do!

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