To redirect the full $1,700, you must owe at least $1,700 in federal income taxes for the year.
You can only redirect up to the amount of federal tax you owe.
For example:
- If you owe $5,000, you may redirect $1,700.
- If you owe $1,000, you may redirect up to $1,000.
Even if you usually receive a refund, you still have a total tax amount listed on your federal tax return. The credit applies to that amount — not to your refund.
Because each household’s situation is different, speaking with a tax professional is recommended before adjusting withholding.
