Solar Tax Credit

USA Discussion in 'Exams and Studying' started by RM1968NJ, Feb 12, 2017.

  1. RM1968NJ

    RM1968NJ

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    Im getting different opinions. Can someone let me know if the following outcomes are accurate?

    Tammy is a 3rd grade teacher
    •She earned $38,000
    •Her total tax liability is $11,000
    •She is a W2 employee and has money withheld from her checks every 2 weeks
    After doing her taxes, she found that she had $12,000 withheld from her paychecks
    •She went solar and has a tax credit worth $10,000
    •How will this tax credit affect her?
    •SHE WILL RECEIVE AN $11,000 REFUND THIS YEAR!
    Withholdings $12,000 – Liability $11,000 = $1,000 refund (w/out tax credit)
    Withholdings $12,000 – Liability $11,000 – Tax Credit $10,000 = $11,000 refund!

    Tammy is a 3rd grade teacher
    •She earned $38,000
    •Her total tax liability is $13,000
    •She is a W2 employee and has money withheld from her checks every 2 weeks
    After doing her taxes, she found that she had $12,000 withheld from her paychecks
    •She went solar and has a tax credit worth $10,000
    •How will this tax credit affect her?
    •SHE WILL RECEIVE A $9,000 REFUND THIS YEAR!
    Withholdings $12,000 – Liability $13,000 = $1,00 due (w/out tax credit)
    Withholdings $12,000 – Liability $13,000 – Tax Credit $10,000 = $9,000 refund!

    Tammy is a 3rd grade teacher
    •She earned $38,000
    •Her total tax liability is $3,000
    •She is a W2 employee and has money withheld from her checks every 2 weeks
    •After doing her taxes, she found that she had the exact amount of withholdings that she needed and would neither receive a tax refund nor owe any money
    •She went solar and has a tax credit worth $10,000
    •How will this tax credit affect her?
    •SHE WILL RECEIVE A $3,000 REFUND THIS YEAR!
    •And the remaining $7,000 will carry over!
    Withholdings $3,000 – Liability $3,000 = $0 refund & $0 due (w/out tax credit)
    Withholdings $3,000 – Liability $3,000 – Tax Credit $10,000 = $3,000 refund & $7,000 carry over!
     
    RM1968NJ, Feb 12, 2017
    #1
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