when a retiree pays little or no taxes, how can we use the tax rebates on new furnace?
We purchased a new furnace, and it comes with a tax rebate as well as ComEd and NICOR rebates. We are retired and pay very little if any taxes. How can we use the rebate? Do we have to withdraw money from our retirement accounts and pay taxes on that in order to use a rebate? Thank you for your help.
Terry Says
If it’s a tax rebate, it can only be used against taxable income — but likely (please double check) ONLY AGAINST STATE INCOME TAXES!! So you’d want to know that before taking withdrawals, which would be fully taxable on a federal level. And, by the way, if you happen to live in Illinois (as indicated in your question), then there is NO state income tax on your retirement plan withdrawals! So this wouldn’t be an offset against taxes!
You may not be able to use the tax rebate, you’ll at least have a benefit of lower costs for your new energy-efficient furnace!
