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June 15, 2024
Question

Can the 25C 2,000 heat pump tax credit result in a bigger refund even if I already get a refund every year? I reads it’s non-refundable

  • June 15, 2024
  • 2 replies
  • 0 views
My tax liability will be about 4,300 this year and I will pay about 5,300. I have 3 kids so normally get most of my refund from that. Does the 25C still apply?

2 replies

DoninGA
Employee
June 15, 2024

If your tax liability is zero before the tax credit is applied then the credit will not be used.  The heat pump credit, if not used, it will not be carried forward to the next tax yar.

June 15, 2024

@jjmillerx21 the tax liability is Line 22..... that line can be reduced to no lower than zero by the heat pump tax credit (that is what is meant by "non-refundable"). 

 

the payments section doesn't change (lines 25-33) so the result on Line 34 can be a larger refund (because line 22 is reduced to zero).  

 

there are other tax credits that are 'refundable' meaning that Congress is adding to the payment section on your behalf.