Not sure why anyone would want to increase their withholding. It's your money your just getting back anyways. But you're right, it could take my buddy years to get the total credit since he usually gets most of his withholding back anyways from his mortgage interest & property tax deductions. He probably only chips away about $1,000 to $2,000 per year. That'd be 7-15 years!
My point was that my friend who makes about $50,000 a year and his withholding from his W2 was about $7,000. He was expecting at least $15,000 back just from his solar credit, but he was shocked that it wasn't the case. The kicker is he took a big loan out to buy the system and planned to pay the principal down with the expected refund. His overall goal was to get a payment that was manageable yet still be able to pay it off in 7 years. Now his monthly payment is a few hundred bucks more a month than he had expected.
If he knew that in advance he probably would have gone the lease route or not got a system at all.
My point was that my friend who makes about $50,000 a year and his withholding from his W2 was about $7,000. He was expecting at least $15,000 back just from his solar credit, but he was shocked that it wasn't the case. The kicker is he took a big loan out to buy the system and planned to pay the principal down with the expected refund. His overall goal was to get a payment that was manageable yet still be able to pay it off in 7 years. Now his monthly payment is a few hundred bucks more a month than he had expected.
If he knew that in advance he probably would have gone the lease route or not got a system at all.
Comment