Originally Posted by
Doppy
It's being described as a credit versus a deduction. Credits reduce your tax liability on a 1-1 basis and don't require that you itemize. This is different than the mortgage interest deduction.
Of course only those who pay at least $4k in federal income tax can take advantage of the entire credit.
That said, I doubt this will happen, but we'll see.
I thought a credit is something you get regardless, as long as you file? My income is virtually 0.. but I have savings. Would I not be eligible to get the $4,000 credit if I spend $8,000 on domestic travel, if I file my taxes for 2020 (even technically I don't have a require to file because my income is too low)? I thought credits are something that the taxpayer gets, as long as they're eligible, regardless of tax amount paid? I missed the tax "credit" from 2009 because I did not file taxes that year, because my income was also virtually nothing that year. But my understanding is that if I would have filed a tax return then I would have been eligible for the 2009 Great Recession credit. I think there was also one in 2001 that I missed too? Hopefully someone on these forums understands it and could clarify. Thanks!