I file jointly with my wife, and we have two children. I am the only income producer, and I make $70,000 per year. The last few years, my standard deduction has been more than itemizing, though we own a house. In fact, we don't even receive the full child tax credit. We are now building a house and thinking about going with geothermal, which would give us a $6,000 non-refundable tax credit, but obviously that wouldn't do us any good since we're not even getting the full child tax credit. However, I'm wondering if taking some funds out of the 401k would produce enough taxes to be able to get that $6,000 in credits and, if so, how much I'd have to take out for the full $6,000. We need some of these funds for the down payment any way, so I was going to use the 401k as a source either way. I just want to make sure the geothermal will wind up only costing $5,000 more instead of $11,000 more (if I wasn't able to use the credit). Thanks!