rebate question 7500 plus 2000 ny

[jjomaski]

i have been told different things about the rebate. i am one to jump and take an inventory car to get the rebate.
so the question is , does the amount of money you were taxed for the year have anything to do with the rebate. i
have been told that if your taxable amount is not 7500 you do not get the full 7500 rebate, is so with my deductions i will get less than half and i can wait. thanks in advance

 

[mywhitenoise]

does the amount of money you were taxed for the year have anything to do with the rebate.

Yes. It's a tax credit, not a rebate.

 

[Nocturnal]

Your deductions decrease your taxable income, they don't directly impact the EV credit. Deductions lower your taxable income which lowers your tax liability for the year. What you owe in taxes - $7500 = new tax liability (can't go below zero). If you paid more than your tax liability you get a refund, if less then you pay. If after your deductions you still owed at least $7500 then you will maximize the credit. You can also move some money from a traditional IRA or 401k to a Roth version and artificially increase your tax liability to take advantage of the full credit if you otherwise couldn't.
*not accountant blah blah

Example.

Let's say your income was 110k. You had 10k in deductions. So your taxable income was 100k. You owe $25k in income taxes on that. You paid 20k in taxes over the year.

You owed 25k - 7500. You paid 20k, so your rebate would be 25000 - 20000 - 7500.

 

[trm2]

It is dependent on your tax liability for the year, not the amount you had withheld. The above was correct, it is a credit, not a rebate, however, it can lead to a tax rebate check (or a larger one) when you file your taxes for the year. You need an income roughly somewhere in the 50s to take full advantage of the credit.

 

[Snow Drift]

1) NY $2,000 Rebate is at point of sale. Meaning, when you buy the car it is immediately used to reduce your financing amount, similar to the Down-payment. It has nothing to do with your tax liability, etc. You'll get it for the Model 3.


2) The Federal $7,500 tax credit, you will get to use all of it IF, your total year Federal tax liability was/is $7,500 or more. If less, you get less (they won't send you a check for any unused amount of the credit).


Pretty much, if you have a well-paying job, you owe over $7,500 in Fed taxes. This doesn't mean you have a bill due on April 15th, instead it means that over the year your income should be taxed, and the amount due would be $7,500+.

• If you have a W2 job, where your employer takes our taxes, you probably already paid it (and may get a refund in April), so the $7,500 credit may increase your refund check.

• If you are self-employed, 1099, or have other income, you may owe Federal taxes in April, which the $7,500 credit will help to reduce.