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Austin tax preparation advice: want my $7500

Discussion in 'Texas' started by austinmichaeld, Jan 30, 2019.

  1. austinmichaeld

    Joined:
    Aug 29, 2018
    Messages:
    89
    Location:
    Hutto Texas
    Any Austin Texas owners, please point me in the right direction. I can’t seem to find someone competent or experienced in ev tax incentives. The lady at round rock Tex center insists I’m only gonna get $750 of the tax credit,,,,,,,my wife and I brought in over $130k in taxable income, so I know this can’t be right.
     
  2. quantumslip

    quantumslip Member

    Joined:
    Mar 3, 2015
    Messages:
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    Location:
    Houston, TX
    I am not a tax person, with that said, the only reason I can think of is that your tax liability is <$7500. In your scenario that would mean you only had $750 in tax liability after taking into account other tax deductions and such. The EV tax credit is nonrefundable, which means it can only reduce your liability to 0. Did you have a lot of other deductions and credits in 2018 that could have dropped your tax liability a lot?

    Of course the devil are in the details, there could be more at play but that's what I'm thinking of, but that's what I'm thinking of.
     
  3. mociaf9

    mociaf9 Active Member

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    Location:
    CA
    Maybe she just misread or is misinformed about the amount of the credit? I can imagine that someone who doesn't deal with lots of people buying EVs might miss that extra zero at the end.
     
  4. ewoodrick

    ewoodrick Active Member

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    If you use one of the software packages, it will easily walk you through the steps. Anyone that doesn't know how to do it shouldn't be trusted as a tax professional..
    But you DO have to owe more than $7500 in taxes. No, this isn't the amount that you expect to get as a refund, it is the amount of tax that is calculated that you owe. You probably will have already paid a good portion of it and will therefore receive a reimbursement of it.
    Be aware, than this may result in more taxes on state income taxes.
     
    • Like x 1
  5. jkcheng122

    jkcheng122 Member

    Joined:
    Oct 15, 2018
    Messages:
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    Location:
    Houston
    Give TurboTax a try and see what it comes up with, you don't have to pay anything until you file with it. My household makes less and I got the full $7500. I don't have a dependent to claim for 2018 though.

    Might also be possible you and your wife have a lot of taxes withheld from your paychecks.
     
    • Disagree x 1
  6. LCR1

    LCR1 Active Member

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    Location:
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    TurboTax
     
  7. brkaus

    brkaus Well-Known Member

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    Jul 8, 2014
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    Austin, TX
    Yes, what others have said. TurboTax. Even if you end up using a professional.

    Is your tax situation complicated?
     
  8. brkaus

    brkaus Well-Known Member

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    Austin, TX
    It’s a common misconception about withholding. Withholding does not matter. A credit simply depends on the total tax liability, which is based on income & deductions.
     
    • Informative x 1
    • Like x 1
  9. rideincircles

    rideincircles Member

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    Location:
    Fort Worth, Texas
  10. austinmichaeld

    Joined:
    Aug 29, 2018
    Messages:
    89
    Location:
    Hutto Texas
    turns out that if you dont select 100% incentive amount on a certain line, it defaults to 10%, watch for this y'all, this is new territory but it worked out
     
    • Informative x 2
    • Helpful x 1
  11. jkcheng122

    jkcheng122 Member

    Joined:
    Oct 15, 2018
    Messages:
    130
    Location:
    Houston
    You're right, I forgot the credit comes into effect before withheld is part of the equation.
     

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