ATC--what happens to unused credit?

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Thread: ATC--what happens to unused credit?

January 17, 2013

tonijustine

Am I correct in my understanding of what can happen next year, too?

I realize that this is subject to change based on my actual tax liability, but do I have the concept right?

Yes and yes. The ATC wipes out your 2012 tax liability, so you get back all of your withholding. The excess ATC of $6000 or so would be available to be applied against your 2013 taxes, so in your example you would get back most of your 2013 withholding also.