Only income SS. Can I still get a tax credit?

homebrew7
homebrew7 Member Posts: 5 Level 2
edited January 6 in Retirement Income

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?

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Answers

  • MatthewD
    MatthewD FreeTaxUSA Team Posts: 350

    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.

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  • homebrew7
    homebrew7 Member Posts: 5 Level 2

    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.!!!

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  • MatthewD
    MatthewD FreeTaxUSA Team Posts: 350

    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.

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  • homebrew7
    homebrew7 Member Posts: 5 Level 2

    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

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