Quote:
Originally Posted by fotze
So to sum up the question in dumbed down fashion.
If you paid lots of taxes and would have at least 1350 of tax to reduce with this credit, would you get an additional $1350 back on your return?
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That's the crux of my question. I'd get the driveway repaved and the roof redone this year if I would get $1,350 back on my taxes. Money would be tight this year, but I could get it done. But I'd hold onto my money and save a bit more if it was only $350.
Okay, here is what I found as a general statement about non refundable tax credits:
"As with any non-refundable tax credit, anyone who applies does not receive the money in the form of a refund. Instead, the amount claimed is multiplied by the lowest personal income tax rate for the year (15% for 2007) and then is deducted from the amount of tax owed for that year."
So at the max, the claim is for $10,000. The tax credit is $10,000 x the lowest tax rate. Which is cut from the amount owing on your taxes.
Looks like it's time to tighten the belt and get the roof/driveway redone.