How to get I-bonds with tax return - if I can't overpay due to credit

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kxl19
Posts: 248
Joined: Wed Mar 13, 2013 12:41 am

How to get I-bonds with tax return - if I can't overpay due to credit

Post by kxl19 »

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?
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whodidntante
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Re: How to get I-bonds with tax return - if I can't overpay due to credit

Post by whodidntante »

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.
soxfan10
Posts: 333
Joined: Wed Jan 21, 2015 9:38 pm

Re: How to get I-bonds with tax return - if I can't overpay due to credit

Post by soxfan10 »

Just make a large deposit like usual.

Credits are based on actual tax as computed... not the amount due.
RubyTuesday
Posts: 2241
Joined: Fri Oct 19, 2012 11:24 am

Re: How to get I-bonds with tax return - if I can't overpay due to credit

Post by RubyTuesday »

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?
Common misunderstanding of non-refundable tax credits…

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
Topic Author
kxl19
Posts: 248
Joined: Wed Mar 13, 2013 12:41 am

Re: How to get I-bonds with tax return - if I can't overpay due to credit

Post by kxl19 »

RubyTuesday wrote: Mon Oct 25, 2021 10:25 pm
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?
Common misunderstanding of non-refundable tax credits…

See this thread with detailed explanation.

viewtopic.php?p=6256328#p6256328

viewtopic.php?p=6256362#p6256362
Everybody - This was extremely helpful, thanks for linking to the existing thread, I must have missed that.
Katietsu
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Joined: Sun Sep 22, 2013 1:48 am

Re: How to get I-bonds with tax return - if I can't overpay due to credit

Post by Katietsu »

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.
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