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How do I know how much tax liability I have to qualify for rebates?

Discussion in 'Model S' started by 1tsla, Sep 24, 2016.

  1. 1tsla

    1tsla Member

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    Sorry if this is the wrong forum. Is there an easy way to look at my previous tax returns to see if I have enough tax liability to qualify for the rebates?
     
  2. hockeythug

    hockeythug Active Member

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    Did you owe tax last year?
     
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  3. shokunin

    shokunin P85 & S40

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    Look at your 1040 and line 63. If you total federal tax liability is greater than $7500 then you will get the full $7500 credit, if it is less, the you will receive a credit up to that amount. If you withheld enough taxes during the year equal or greater to line 63 (you're expecting a refund) then that $7500 credit will be added to your refund check.
     
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  4. 1tsla

    1tsla Member

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    No, I received a refund.

    Great! this is what I needed. Yes, line 63 shows way more than $7500. So I don't have to necessarily owe taxes each year as long as my tax on line 63 is greater than the credit correct?
     
  5. shokunin

    shokunin P85 & S40

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    That is correct. Whether you had to pay or received a refund at the end of the year means nothing to the eligibility of the $7500 credit.

    If you owe $8000 at the end of the year the $7500 credit will reduce that tax bill down to $500. If you were expecting a refund of $1000 and your line 63 is greater than $7500, then your tax refund will be $8500.
     
    • Informative x 1
  6. 1tsla

    1tsla Member

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    Thank you so much shokunin for the quick replies. The OA has the car on hold for me so it's a go!
     
  7. TexasEV

    TexasEV Active Member

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    It has nothing to do with whether or not you received a refund. It has to do with to total tax owed for the year, regardless of whether or not it's been withheld, or paid as estimated taxes, or if you overpaid and are due a refund.
     
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  8. 1tsla

    1tsla Member

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    Thanks everyone! I know I could have eventually found the answer searching but I was in a hurry.
     
  9. eyespii

    eyespii Member

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    A tax refund just means you withheld more money from your paycheck than you actually ended up owing at the end of the year. It doesn't mean you didn't have to pay any taxes that year.
     

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