EarlyAdptr
Well-Known Member
Let's say you paid 10k in taxes and your tax computation after deductions and before credits is 10k. Now let's say your only credit is the 7500 EV credit-- the IRS doesn't get you a check for 7500, right? That's my understanding or am I totally wrong...
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I think you're confusing the "tax liability" with taxes due at filing. Taxes due (or refund) at Filing is essentially the difference between your tax liability and any taxes you've paid to date (through pay check withholding or estimated payments).
With the amended return, you've already paid for a higher tax liability as now calculated in the amended return with the R1 tax credit. Since the filer already paid the full (higher) tax liability - the government needs to cut a check. But it's really just a refund for the excess taxes paid.
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