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Originally Posted by exbauer
I searched and couldn't find anything relating to this...
I looked at my tax return last year and say for instance my total tax due is $1600 and I have a hybrid tax credit of $2100. Do I get a refund of $500 or do I just not pay taxes for that year? From the looks of it I would just get $1600 for the hybrid tax credit and not get any refund for the other $500. Is that correct?
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For most people, they pay way more than $1600 in federal taxes. The $1600 in your example is just the difference in what you really owed and what you paid. It's an adjustment. The credit will change what you really owe, so you owing the IRS $1600 will turn into the IRS owing you $500.
Assuming you used Form 1040 for your taxes, look and see what is your total tax (Line 63). This is the number that will be reduced by the credit. Is is a lot more than $2,100?