PracticingHuman
Active member
planet4ever said:I am very sorry to hear that you were confused about the $7500. It has nothing to do at all with how much is withheld. It relates only to the net amount of income tax you pay during the year: (withholding) + (quarterly payments) + (amount paid with return) - (refund). The confusion for many people is that it is called a "non-refundable" credit. But all the IRS means by that phrase is that they won't give you back more than what you gave them.
Thanks for the clarification on that. I was under the assumption that I would get nothing back.
Actually there were a couple of occasions where a salesperson tried to explain that very same thing to me. Of course I can't say that I'm 100% confident in what a salesperson tells me if they think it might net them a sale...
Nonetheless, I was not confident that I would get the $7500 back through filing my taxes, but I was confident that I would get it through leasing. I figured let them take $7500 off the bottom line, meaning a lower amount of interest paid at the end of the day. I figured I was betting on a sure thing rather than the tax return gamble. Turns out it was a gamble for many people, as the thread indicates. My heart goes out to them. That would have to be really frustrating.