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$7500 Tax Credit Procedures...

MichFin

Member
May 8, 2015
303
61
Detroit, MI
You have owe at least $7500 in taxes. Not to be confused with refund or payment at the end of the year.

For example line 47 of your 1040 tax form must be > $7500
 

liuping

Active Member
Jul 23, 2013
2,242
896
San Diego
Are you referring to the AMT?

I thought this withstood the AMT...an I wrong about that?
AMT does not effect the EV tax refund, but not everyone has $7500 in tax liability.

It's not a credit, so if you don't owe that much tax in the year, you will not get the full $7500.
 

brec

Member
Aug 3, 2015
363
139
Reno & Las Vegas, NV
AMT does not effect the EV tax refund, but not everyone has $7500 in tax liability.

It's not a credit, so if you don't owe that much tax in the year, you will not get the full $7500.

It is a credit, so ... [rest of sentence correct].

The title of IRS Form 8936 is, "Qualified Plug-in Electric Drive Motor Vehicle Credit"

Note that the form linked in the OP is for tax year 2014. The 2015 version appears not to be available yet.
 

jlucero

Member
Jun 23, 2015
479
57
DALLAS
my accountant is asking about the following certificate? anyone know anything about this? (in the green box)
tesla.jpg
 

S3XY

Active Member
Nov 24, 2015
1,978
6,128
Buffalo, NY
AMT does not effect the EV tax refund, but not everyone has $7500 in tax liability.

It's not a credit, so if you don't owe that much tax in the year, you will not get the full $7500.
I think what you mean is that it's not a refundable credit, i.e. if your tax liability is less than $7500 (say $6000) you do not get a refund check for the difference ($1500).
 

PatD

Member
Dec 21, 2014
430
79
Broomall, PA
You have owe at least $7500 in taxes. Not to be confused with refund or payment at the end of the year.

For example line 47 of your 1040 tax form must be > $7500

If someone has this problem (Is driving a Model S and doesn't owe at least $7500 in taxes), please forward me your tax accountant's number ASAP!
 

Modeler

Member
Jan 31, 2015
50
24
Washington, DC
If someone has this problem (Is driving a Model S and doesn't owe at least $7500 in taxes), please forward me your tax accountant's number ASAP!

Actually, it's pretty easy to get yourself in a situation where you don't owe $7500. It is not about your total taxes, but the mount you owe at the end of the year. If you were not under withholding, you would not have an amount to pay. I ended up cancelling my Q4 estimated tax payment completely to ensure I have over $7500 still to pay come April 15.
 

mmccord

Member
Dec 9, 2014
997
491
Pine Bush, NY
Actually, it's pretty easy to get yourself in a situation where you don't owe $7500. It is not about your total taxes, but the mount you owe at the end of the year. If you were not under withholding, you would not have an amount to pay. I ended up cancelling my Q4 estimated tax payment completely to ensure I have over $7500 still to pay come April 15.

This is incorrect. It is about the amount of taxes you pay, not the amount you owe in April.
 

Max*

Charging
Apr 8, 2015
6,670
3,719
NoVa
Actually, it's pretty easy to get yourself in a situation where you don't owe $7500. It is not about your total taxes, but the mount you owe at the end of the year. If you were not under withholding, you would not have an amount to pay. I ended up cancelling my Q4 estimated tax payment completely to ensure I have over $7500 still to pay come April 15.

This is completely incorrect.

[Setting fees aside, and oversimplifying it] you need to pay uncle Sam $12. You can pay $1/month off your paycheck and owe nothing in April, or you could pay $3/paycheck and get a refund of $24 in April. Or you could pay $0/paycheck and owe $12 in April. In all 3 cases you pay the same amount of taxes. It wouldn't be logical or fair to say that you can only file for the car tax credit if you underpaid your taxes throughout the year.

It's definitely dependant on the amount of taxes you NEED to pay, and not on what you ALREADY paid.
 

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