How can I use the 30% federal tax credit if I don't owe any income tax?
My Wife and I are retired and basically only have SS income to report. Our Schedule A deductions are higher than the standard but even with the standard deduction we end up with $0 tax due. We haven't paid taxes in years so how can I use the solar tax credit?
One idea I have is that if I withdraw money from the IRA, or even move it into a Roth IRA, that will count as additional income and will generate a tax due - can I then use the solar tax credit to offset that tax due and get use of the money "tax free"? I also assume the 30% would be equal to the tax due so the total amount I could withdraw would be much larger based on my tax bracket.
Any other known ways? >>> I know you guys are not tax lawyers or CPA's so I'll take your comments with a grain of salt but IF this is a viable way and has been done before then I may pay to get a pro's advice but not until I am pretty sure of the answer first. <<<
My Wife and I are retired and basically only have SS income to report. Our Schedule A deductions are higher than the standard but even with the standard deduction we end up with $0 tax due. We haven't paid taxes in years so how can I use the solar tax credit?
One idea I have is that if I withdraw money from the IRA, or even move it into a Roth IRA, that will count as additional income and will generate a tax due - can I then use the solar tax credit to offset that tax due and get use of the money "tax free"? I also assume the 30% would be equal to the tax due so the total amount I could withdraw would be much larger based on my tax bracket.
Any other known ways? >>> I know you guys are not tax lawyers or CPA's so I'll take your comments with a grain of salt but IF this is a viable way and has been done before then I may pay to get a pro's advice but not until I am pretty sure of the answer first. <<<
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