In looking over the IRS instructions for claiming the Energy Efficient Home Improvement Tax Credits https://www.irs.gov/credits-deductions/ ... ent-credit, I see that "The credit is nonrefundable, so you can't get back more on the credit than you owe in taxes. You can't apply any excess credit to future tax years." However, the instructions do not say anything about whether the credit can be used to offset unearned income. So two questions:
1) Can the home improvement tax credits be used to offset unearned income (assuming no earned income)?
2) Would the tax credit be an "above the line" deduction?
We're trying to manage our income to maximize ACA subsidies in early retirement, so the difference between "above the line" and "below the line" deductions has an impact the calculation of MAGI for those subsidies.
1) Can the home improvement tax credits be used to offset unearned income (assuming no earned income)?
2) Would the tax credit be an "above the line" deduction?
We're trying to manage our income to maximize ACA subsidies in early retirement, so the difference between "above the line" and "below the line" deductions has an impact the calculation of MAGI for those subsidies.
Statistics: Posted by Tourne — Mon Jun 03, 2024 3:24 pm — Replies 1 — Views 99