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How does the tax credit work?

Discussion in 'Model S' started by cplaw, Oct 29, 2016.

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  1. cplaw

    cplaw Member

    Joined:
    Jul 14, 2016
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    Location:
    Los Angeles
    If hypothetically I owe 100k in income taxes and 100k was deducted from my paycheck for income taxes, does that mean I would get a tax refund check of $7500?
     
  2. sdorn

    sdorn Director of Awesome

    Joined:
    Oct 9, 2016
    Messages:
    901
    Location:
    Georgia
    Basically that is right. It is a $7500 credit toward your total tax liability, so if you had the exact amount of your tax liability withheld from your paycheck (meaning that excluding the EV credit you would neither owe additional taxes or be due a refund) you would get a $7500 refund with the EV tax credit assuming your total tax liability was at least $7500. If your total tax liability was less than $7500 your credit would be limited to the amount of your total tax liability.
     

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