Submitted by scaesare on March 14, 2013
I considering purchasing a MS after I receive a mid-year bonus.
However, I typically receive approximately ~$4500 as a federal tax refund each year. Thus, if I understand the $7,500 federal tax credit correctly, I'd derive no benefit.
So it would seem that I need to increase my tax liability by about $12K this year in order to make full use of the credit. I'm sure others have faced this... how have you dealt with it?
I'm considering talking to my employer's accounting folks to see if they would issue me the bonus without with-holding as much federal tax... then I would just go ahead and use the credit to offset that.
Thoughts or recommendations?