4XE tax credit!!!!! Not able to receive it!

[gman123]

So we file taxes pay as you go, we told our accountant in April that we were purchasing the 4xe and we would qualify. We called this week about it and they found out that we don’t qualify because we have already paid all of our taxes, and it’s non refundable!!! So looks like we just lost $7,500. So PSA to all, also not sure if anyone else has had experience with it!! Any help appreciated!

Sponsored

 

[John VonJeep]

That’s a lot of exclamation points.

 

[mnjeeper]

That’s a lot of exclamation points.

He prepaid them.

 

[clickclickboom]

I think he's wrong. As long as your tax liability for the year is over $7500 for the year you qualify. Prepaid or not.

 

[Greywind]

I think clickclickboom is right.

 

[ResGuy68]

Fire your accountant. The guy is an idiot. This is taxes 101. I'd be worried he was missing other items.

"Non-refundable" in the context of income taxes refers to your calendar year tax liability. Certain credits (E.g. earned income tax credit) are "refundable." This means that the government will pay you the tax credit even if you owed no taxes.

For example. Let's say your income was $10k and you paid $200 in income taxes... You are eligible for a $1k tax credit. If it was "refundable" then you would get the full $1k in taxes. If it was "non-refundable" then you'd be capped at $200.

As long as you were a net-payer of income taxes in 2021, you will be eligible for your tax credit. If you were a net-payer by more than $7.5k, then you'll get the full tax credit.

It doesn't matter when you paid...

As an aside, nearly everybody has tax withholding (pay as you go). If they didn't, they'd be subjected to massive tax bills (and associated penalties) at year end... yet they get the tax credit.

 

[Greywind]

It’s been a few years since I wore my tax hat, but non refundable simply means that if your tax credits exceed your tax liability, the government will not refund you the excess; however, your tax credit will still decrease your tax liability dollar for dollar until your liability hits zero. Any amounts prepaid should therefore be refundable.

 

[gman123]

thank you thank you!!! That’s what I was thinking too, there’s no way that’s right because hundreds of thousands of people would be in this case, I plan on getting a new accountant

Fire your accountant. The guy is an idiot. This is taxes 101. I'd be worried he was missing other items.

"Non-refundable" in the context of income taxes refers to your calendar year tax liability. Certain credits (E.g. earned income tax credit) are "refundable." This means that the government will pay you the tax credit even if you owed no taxes.

For example. Let's say your income was $10k and you paid $200 in income taxes... You are eligible for a $1k tax credit. If it was "refundable" then you would get the full $1k in taxes. If it was "non-refundable" then you'd be capped at $200.

As long as you were a net-payer of income taxes in 2021, you will be eligible for your tax credit. If you were a net-payer by more than $7.5k, then you'll get the full tax credit.

It doesn't matter when you paid...

As an aside, nearly everybody has tax withholding (pay as you go). If they didn't, they'd be subjected to massive tax bills (and associated penalties) at year end... yet they get the tax credit.

thank you thank you!!! That’s what I was thinking too, there’s no way that’s right because hundreds of thousands of people would be in this case, I plan on getting a new accountant!! Thank you for you all for your help!!!

 

[mnjeeper]

I think clickclickboom is right.

I don't even care, I agree based on seeing Saliva in concert at least 5 times.

 

[bossboy302]

I'm a former tax accountant.

Get yourself a new one

 

[WannFly]

I am not even a CPA and can confirm that your's is full of crap

 

[ElHobbz]

I'm a former tax accountant.

Get yourself a new one

This

 

[Hennessey17]

My father and three brothers are all tax accountants... (I'm not)...

You can also amend your returns...

I sent in an amended return this past summer to my 2019 for a tax credit I didn't get.

 

[SpaceCase]

All fixed up

Cool story bro

 

[entropy]

Can you send me your accountants address?

I would like to send him a kick in the butt.

Sponsored