I'd like to buy my allotment of i bonds in next year's tax return.
In previous years, I've overpaid so that I'd have enough for the $5k in paper bonds.
However, this year, we have a EV tax credit which is not "rollable", so I need to ensure I have at least a $7500 tax liability to absorb the credit (I'll likely have this excess liability + more).
Is it still possible for me to get Ibonds if I have a balance due? IS there some strategy where I could have the liability (if that includes the $7500 credit, then overpay my balance + $5k, and then file for an extension?
How to get I-bonds with tax return - if I can't overpay due to credit
- whodidntante
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Re: How to get I-bonds with tax return - if I can't overpay due to credit
Mock tax return! No, don't make fun of your tax return. Pretend like you are filing both of the situations you care about, and see what you learn.
Re: How to get I-bonds with tax return - if I can't overpay due to credit
Just make a large deposit like usual.
Credits are based on actual tax as computed... not the amount due.
Credits are based on actual tax as computed... not the amount due.
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Re: How to get I-bonds with tax return - if I can't overpay due to credit
Common misunderstanding of non-refundable tax credits…kxl19 wrote: ↑Mon Oct 25, 2021 9:28 pm I'd like to buy my allotment of i bonds in next year's tax return.
In previous years, I've overpaid so that I'd have enough for the $5k in paper bonds.
However, this year, we have a EV tax credit which is not "rollable", so I need to ensure I have at least a $7500 tax liability to absorb the credit (I'll likely have this excess liability + more).
Is it still possible for me to get Ibonds if I have a balance due? IS there some strategy where I could have the liability (if that includes the $7500 credit, then overpay my balance + $5k, and then file for an extension?
See this thread with detailed explanation.
viewtopic.php?p=6256328#p6256328
viewtopic.php?p=6256362#p6256362
“Doing nothing is better than being busy doing nothing.” – Lao Tzu
Re: How to get I-bonds with tax return - if I can't overpay due to credit
Everybody - This was extremely helpful, thanks for linking to the existing thread, I must have missed that.RubyTuesday wrote: ↑Mon Oct 25, 2021 10:25 pmCommon misunderstanding of non-refundable tax credits…kxl19 wrote: ↑Mon Oct 25, 2021 9:28 pm I'd like to buy my allotment of i bonds in next year's tax return.
In previous years, I've overpaid so that I'd have enough for the $5k in paper bonds.
However, this year, we have a EV tax credit which is not "rollable", so I need to ensure I have at least a $7500 tax liability to absorb the credit (I'll likely have this excess liability + more).
Is it still possible for me to get Ibonds if I have a balance due? IS there some strategy where I could have the liability (if that includes the $7500 credit, then overpay my balance + $5k, and then file for an extension?
See this thread with detailed explanation.
viewtopic.php?p=6256328#p6256328
viewtopic.php?p=6256362#p6256362
Re: How to get I-bonds with tax return - if I can't overpay due to credit
The term non refundable credit was probably an unfortunate choice. The misconception that it is tied to the tax return refund not the tax liability is extremely common and understandable.