Replies

1. 
   cussnu2 | Apr 02, 2009 08:15pm | #1

   Just a reminder that these are NON-REFUNDABLE tax credits.  They are only allowed up to the amount of your tax liability.  If you don't have a $1,500 tax liability then you don't get the $1,500 tax credit....at least not this year.  Don't presume that your clients have a tax liability regardless of their income level. 

   My best suggestion is to tell them to look at their 2008 tax return and see what line 46 is.  This is their tax owed on their income.

   Next they have to look at line 56 which is their net tax after other credits.  If line 46 and line 56 are not both more than the $1,500 you are promising them, then they are either going to be mad at you or the tax preparer.

   Now we can get more technical than that about how they might still get $1,500 even if they don't have a $1,500 liability but your heads will explode.

   Also note, I have been careful to say Tax Liability, not refund or tax due/owed.  Your tax liability is the amount of tax on your income less your deductions, exemptions and credits.  Its your tax bill.  Your refund is the amount of your willfull or negligent overpayment of your tax liability and a tax due/owed is the amount of your willfull or negligent underpayment of you tax liability.

    

1. 
   BarryE | Apr 02, 2009 08:54pm | #2

   thanks for the adviceI'll check it out with my tax adviser.

   Barry E-Remodeler