Fed Energy Credit

[jackvh]

What is the name of your state (only U.S. law)? Indiana

I am 80 yr old retired on fixed income. I pay very little in taxes. I had new geothermal unit installed last year, and was told at that time that I would get $1500 back when I filed my taxes. As my taxes have been prepared, I am now learning that I do not infact get that money back as a refund, but the fed gov will keep the amount above my taxes payable to be carried over to future years. Is that information correct? Please understand that I had planned to use this money to pay off the loan I had to take to put in the unit, and probably won't live to see the end of my "tax credit" as that will be approx 13 yrs in the future!

Is there an exception for the elderly with low tax liability or was I just misled when I purchased this?What is the name of your state (only U.S. law)?

 

[ShyCat]

Is that information correct?

Yes. Your $1500 credit is on Line 52 of your form 1040, as a non-refundable credit. The only tax credits that are refundable are those listed in the Payments section of the form 1040 (i.e., Lines 61 - 71).

Is there an exception for the elderly with low tax liability or was I just misled when I purchased this?

No, there is no exception. I don't know if you were misled or just misunderstood, or even if any misleading was intentional to complete the sale or just bad advice from someone trying explain what they themselves do not fully understand, or for which they did not have all the information required to know if you would receive a refund (i.e., your income, deductions, withholding).