I am about to start several enhancements to my home heating system. These
include items like installing a new energy-efficient hot water boiler; and
adding solar panels. I've been researching the various federal and state
rebates/tax credits. e.g The Federal Renewal Energy Tax Credit for solar is 30%,
with no maximum. Solar panel installation is not cheap - can easily run $15-$20K
It leads to an interesting situation. Basically, once I factor in all itemized
deductions and tax credits - I get a huge refund in April 2012. The amount of
this refund is greater than my payroll withholding for the 2011 tax year!
So for example (these figures below are notional, not exact - just to
- I calculate my payroll withholding by 12/31/2011 is say $3600
(and keep in mind, I have already paid almost 4 months Jan-April 2011; so say
already paid $1200;
I have to pay $2400 over May-Dec)
a. if I keep payroll withholding at same level for the rest of 2011 ; I get a
refund of $6000.
b. If I adjust federal payroll withholding so that $0 federal tax is withheld; I
still get a refund of $3500+.
I don't want to get a giant refund in April 2012. I would prefer to make use of
the money in the rest of 2011. Case (b) above makes the refund smaller than (a);
but still significant.
In the example above - what options do I have to get the $3500 now?
- posted 9 years ago