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Filing Taxes Jointly & Tax Credit

Discussion in 'Model 3' started by PhysicsGuy85, Sep 17, 2017.

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  1. PhysicsGuy85

    PhysicsGuy85 Member

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    Forgive me if I missed this info somewhere, but I read through A LOT of threads on the tax credit hoping to find some info on this, and I only saw it posed as a question, and never answered.

    Scenario: I myself have a reservation for the M3. Regardless of where the tax credit is in the phase-out when I take delivery, IF my estimated tax liability is going to be less than the current amount of the tax credit, can my wife and I file jointly to increase our combined liability to realize more/all of the available credit?

    Again, I dug deep and did not find an answer on this.
     
  2. patrick40363

    patrick40363 Member

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  3. number12

    number12 Active Member

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    Better question is... if you don't owe $7500 in taxes should you be buying a $40-60k car at all?

    Have you considering leasing a '17 leaf?
     
    • Disagree x 12
  4. PhysicsGuy85

    PhysicsGuy85 Member

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    Have you considered that some people's financial situation is a bit more complex than their tax liability would suggest? But thank you for your concern...
     
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  5. PhysicsGuy85

    PhysicsGuy85 Member

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    Thank you. Are you a tax pro or you just happen to know this will work?
     
    • Disagree x 1
  6. DR61

    DR61 Member

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  7. JCLeonard

    JCLeonard Member

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    My wife and I file jointly and used the full credit for Leaf last year. If you have not filed jointly in the past, changing to jointly now may introduce OTHER important tax considerations. Definitely worth asking a local tax pro like we did.
     
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  8. ncmountains

    ncmountains Member

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    I am a tax professional
    Yes, you can file jointly to maximize the credit.
    Generally speaking there are very few circumstances that make mfs a favorable filing status anyway
     
    • Like x 6
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  9. PhysicsGuy85

    PhysicsGuy85 Member

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    mfs = married filing separately?
     
  10. Barklikeadog

    Barklikeadog Member

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    this
     
  11. SageBrush

    SageBrush 2018: Drain the Sewer

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    Yes.

    I am not a CPA
     
  12. SageBrush

    SageBrush 2018: Drain the Sewer

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    A single disagree vote hardly covers your post:

    The car starts at ~ $36k and has up to a $7,500 tax credit
    Your presumptions about savings or current income are unsupported.
    A 100 mile range LEAF in Montana ? A lease ?!
     
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  13. number12

    number12 Active Member

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    I just bought two 17 leafs as back up cars and dealer had ~$13k in incentives plus $7500 fed rebate each. I simply was suggested the lowest price EV on the market for ~$14k out the door or financed for less than $300/mo + fed tax credit.

    A T3 in 2017 or early 2018 will cost north of $50k... factor in initial depreciation... seems like to expensive of a car. No matter the "complex situation"
     
  14. ItsNotAboutTheMoney

    ItsNotAboutTheMoney Well-Known Member

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    A few questions:
    How much does a single person have to earn to have a Federal Income Tax tax liability of $7,500?
    Given current Medicare and Social Security taxes, what would be the person's net monthly income?
    How much disposable monthly income would the single person have?
     
  15. number12

    number12 Active Member

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    @ItsNotAboutTheMoney it's not about the money...

    If you can not qualify for credit... buy used. It's priced in.

    Used S vs new 3. Seems like no brainer. Hopefully the 8+ disagrees will have better advice.
     
  16. number12

    number12 Active Member

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    Or lease so again it's "priced" in.. although Tesla lease programs are terrible in some states
     
  17. patrick40363

    patrick40363 Member

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    I have done it. I use a CPA for my taxes.
     
  18. SageBrush

    SageBrush 2018: Drain the Sewer

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    Only if you want it to.

    I know LEAFs are cheap ... and inexpensive. I bought one.
    They also are quite unlikely to be the only car for a person in Montana so your suggestion probably amounted to a monthly payment of $200+ a month for the Bozeman driving and another monthly payment for the non-local car. That is no way to save money. The person who has low tax liability, low income, and low assets buys ONE car for the household if possible or a dirt cheap crap ICE'er for the local driving duties.
     
  19. Barklikeadog

    Barklikeadog Member

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    The best answer to almost any tax question: It depends.

    If a single person made 36,000 in schedule C income and had literally nothing else going on, he would have a $7500 liability.
     
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  20. T34ME

    T34ME Active Member

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    Tax liability has nothing to do with net worth or a creative tax avoidance strategy. There is one purported Billionaire who said recently that he is "smart" because he pays no taxes.
     
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