I had a high efficiency furnace installed this year. It qualifies for a $600 Federal tax credit. My only income was Social Security and interest income i made. I still have no tax due. Can I still get the $600 dollar tax credit?
Hello Homebrew7,
The Home Energy is a nonrefundable credit, which means it will reduce the amount of total tax calculated on your taxable income. If you have no taxable income and $0 tax, then no credit is applied. However, I suggest you still claim the credit since it can be rolled forward.
If, in the following years, you had some taxes owed on your income, it could then benefit you.
Thanks for your help.
I didn't think that nonrefundable tax credits Could be carried forward. It was my understanding that it had to be used in a year it was installed. I hope you are correct that it can be used next year.!!!
Homebrew7,
Let me clarify. The Residential Clean Energy Property Credit is definitely a credit that can be carried forward. See Q4 on this IRS FAQ
The Energy Efficient Home Improvement Credit, which includes a furnace, cannot be carried forward.
Sorry for not being clear about the difference. So if you cannot use it this year, you lose it.
Thanks for the clarification. Even though I don't like the answer. That kind of sucks. It was one of the reasons I picked the furnace that I did. Live and learn I guess
Really appreciate your help!!
Regards; Scott
