$7500 tax rebate - what proof do I need?

[redgt]

it is a credit NOT a deduction. you do need a tax liability equaling/exceeding that but that is barely over $50,000 taxable income for single filer. deductions are at your tax rate so a $7500 deduction would reduce your taxable income but only mean around a $1800 tax savings if you were in a 24% bracket. A credit is dollar for dollar savings on your tax liability

Hoping that tesla buyers have at least $50,000 taxable income if buying a $50,000+ vehicle

 

[SD_Engnr]

I still think many are missing this distinction. It’s not $7500 cash back, it’s “up to” a $7500 tax deduction based on your tax liability.

Yep. I predict that there's going to be countless threads on how people misunderstood the tax credit.

 

[Daniel in SD]

Yep. I predict that there's going to be countless threads on how people misunderstood the tax credit.

And, you can't carry it over to the next year. It's a ridiculous subsidy for the rich which I will gladly take.
Someone should have posted a giant warning before the new year to tell people to harvest some investment gains to get their tax liability up to $7500.

 

[2cool4school]

I still think many are missing this distinction. It’s not $7500 cash back, it’s “up to” a $7500 tax deduction based on your tax liability.

That is where you are wrong.

Remember, a tax credit is different from a tax deduction, which merely reduces your total taxable income. A credit reduces the taxes you owe, so a $7,500 credit is the same as $7,500 going in your wallet.

Source

 

[agarabaghi]

Which is why i think the move to reduce the price of the car $2000 in the new year was a great move. People who dont make enough to get the 7500 can hopefully get the full 3750 now, as well at the $2k discount already applied!

But yea i feel like a lot of people are going to be confused when they realize they dont qualify for the full $7500.

 

[whatthe2]

The only little problem right now is the IRS form #8936 has not been updated for 2018 and is only available in its 2017 variant.

Ah thanks, I didn't know about this form. I guess my CPA will need my VIN at some point after all.

 

[Trips]

it is a credit NOT a deduction. you do need a tax liability equaling/exceeding that but that is barely over $50,000 taxable income for single filer. deductions are at your tax rate so a $7500 deduction would reduce your taxable income but only mean around a $1800 tax savings if you were in a 24% bracket. A credit is dollar for dollar savings on your tax liability

Hoping that tesla buyers have at least $50,000 taxable income if buying a $50,000+ vehicle

I said last week that I should only get $7,400 unless my accountant does something different then I did. I don't think a lot of people realize this and will be shocked when they do their taxes.

By the way it was a $60k car on my tiny income

 

[M3BlueGeorgia]

I said last week that I should only get $7,400 unless my accountant does something different then I did. I don't think a lot of people realize this and will be shocked when they do their taxes.

By the way it was a $60k car on my tiny income

Question: Does this mean your total tax liability for 2018 was only $7,400, or your tax refund is only going to be $7,400?

The difference between these is where a lot of the confusion comes from.

I didn't adjust my withholding so my actual refund will be over $7,500

 

[Knightshade]

That is where you are wrong.

Source

No, he's exactly right- and your own source says so too.

Here's the part you quoted without the disclaimer hacked off the end of it.

A credit reduces the taxes you owe, so a $7,500 credit is the same as $7,500 going in your wallet come tax day, provided you owe enough in taxes.

So, just like the previous guy said, it's UP TO $7500 based on your tax liability.

 

[dendenyc]

The only little problem right now is the IRS form #8936 has not been updated for 2018 and is only available in its 2017 variant.

Gov't is shut down bro...updated forms gonna take a while

 

[Runt8]

No, he's exactly right- and your own source says so too.

Here's the part you quoted without the disclaimer hacked off the end of it.




So, just like the previous guy said, it's UP TO $7500 based on your tax liability.

The confusion is because he used the word "deduction" - which has a special meaning in tax terminology.

 

[Knightshade]

The confusion is because he used the word "deduction" - which has a special meaning in tax terminology.

Fair enough... but there's also a distinction in tax terminology between a refundable credit or not...

a refundable credit (which the EV credit is not) really IS like cash in your wallet as 2c4s suggests.... but this isn't that. It's a non-refundable credit, so it's only "worth" up to either $7500 or your total tax liability for the year- whichever is smaller.

 

[Megapsychotron]

I file with TurboTax, and it's telling me that the form is not ready but it expects it will be ready January 25th. But, with this government shutdown, I wonder if that will hold true.

 

[redgt]

IRS is not accepting tax returns until Monday January 29th so not a big deal

They have also said that refunds will not be held up due to the shutdown

 

[2cool4school]

Confirming: I submitted my tax return about a week ago. I am getting full $7,500 which was added to my federal return amount. I needed:

• VIN
• Curb weight
• Battery capacity (kWh)
• Date of purchase
• Date the vehicle was paced in service.

 

[muleferg]

"FYI, it's not a rebate, it's a tax credit that is dependent on your tax situation. So, you may or may not qualify for the full $7500."

You are Zakery right. I have already got Tax deduction's ( Not Refund's) in 2014 for Model S, 1 2016 Model X. Will get 1 for Model X 2018, and will get one for a 2019 Model 3P, if Trump don't get the money for the wall I sold my S to my CPA. and don't have a clue. Thats the reason to hire a good CPA. He drove it all the way from NC to Seattle, and down to Fremont, and back.

 

[mhan00]

It's just the VIN. Which is why you shouldn't post your VIN anywhere. A few years ago there were a few cases of people capturing VINs online and fraudulently claiming the credit, totally hosing up the real owner who subsequently attempted to do so.

I don’t get how this would work. Ultimately, registration info would prove who actually bought the car, so the only person who would get hosed would be the person who fraudulently claimed the credit, right? I would imagine the IRS would have mechanisms in place to investigate this stuff if two people claim the same VIN for their tax credit. The legitimate owner might be out some time, but the fraudster would have been the one caught trying to defraud the IRS.

 

[TQCLove]

Looks like 8936 is updated doe 2018 now.
About Form 8936 | Internal Revenue Service
The form itself:
https://www.irs.gov/pub/irs-pdf/f8936.pdf

 

[Nocturnal]

I have no idea how the whole system works, but I would imagine that they could track the VINs that are registered. If there is a duplicate, then they could request that both filers submit proof, and the person without proof could be convicted of tax fraud which is a serious offense. Not sure how they would catch someone using a foreign VIN (or can you figure out the destination country from the VIN?)

Vin is coded for country of origin I believe.

 

[SeanM]

Hello,

Other than the IRS site for instructions about filling this form, can anyone please point out to a site that has instructions or better a sample filled form that one can review?
As it's the first time am filling it up (I do my own tax filing) hence don't want to do blunder by filling incorrectly.

Hugely appreciated.. thanks.