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Tax credit 2024 [The tax credit discussion thread]
- Thread starter vickh
- Start date
you should have stopped paying taxes in 2023 as soon as you knew you were eligible for the $7500 ev tax credit b/c its taken off what you owe. if you don't owe the IRS any money the ev tax credit won't benefit you.
my wife got her M3 at the beginning of Feb 2023. i stopped all income tax from my work, and i told her to do the same. so we only paid Fed taxes for Jan 2023. i had estimated that we would owe around $10-12,000 in income tax for 2023, i also sold enough stocks at a loss, and can deduct Capital Losses.
Yeah, you should probably get the full 7,500 assuming you were under the income limits.
Form 8836 goes the Schedule 3 goes to line 20 of Form 1040
I don't think that's how a tax credit works. According to my CPA, it is based on my tax burden (taxes owed for the entire year based on income, deductions, expenses, etc.), not on the additional amount I may owe when I pay my taxes.
I'm not a CPA, non-advice...
The credit comes off your tax liability, not your tax due.
Only $3k of capital losses can be used to offset normal income per year.
ah ok, my bad, got confused between "non refundable" and "tax refund". but i was still able to invest all that money throughout the year. sell off enough stocks at a loss to get the $3,000 capital losses, and wait till April to file and pay my taxes. i'm doing the same thing this year too, not withhold any Fed taxes and investing it.
I don't like big "refunds" of my own money either but Make sure that you're withholding at least 90% of what's due though, or there is a penalty.
You can take the credit in 2024 if you qualified in either 2023 or 2024, so it looks like yes.
My situation
2023 - I was a Canadian resident with US income (about 15K) through company stocks. Will file the 2023 taxes (1040NR) next week similar to what I have done for the last few years.
2024 - Moved to the US in Jan and will be a resident for 2024 with US income > 150K and will buy the car with POS credit. I think I will be eligible for the tax credit based on my 2023 AGI in the US through 1040NR even though I wasn't a resident. Is my understanding correct?
IRS states that you can use your Adjusted Gross Income (AGI) from the current year (2024) or the previous year (2023) whichever is lower. In my case 2023 US income is 15K but 2024 is over 150K. Does it matter if you were a resident of another country in 2023 but had US income, filed 1040NR and use that income (under 150k) to claim the EV tax rebate at POS in 2024 where my 2024 income will be more than 150k?
Thanks in advance for any help.
2023 - I was a Canadian resident with US income (about 15K) through company stocks. Will file the 2023 taxes (1040NR) next week similar to what I have done for the last few years.
2024 - Moved to the US in Jan and will be a resident for 2024 with US income > 150K and will buy the car with POS credit. I think I will be eligible for the tax credit based on my 2023 AGI in the US through 1040NR even though I wasn't a resident. Is my understanding correct?
IRS states that you can use your Adjusted Gross Income (AGI) from the current year (2024) or the previous year (2023) whichever is lower. In my case 2023 US income is 15K but 2024 is over 150K. Does it matter if you were a resident of another country in 2023 but had US income, filed 1040NR and use that income (under 150k) to claim the EV tax rebate at POS in 2024 where my 2024 income will be more than 150k?
Thanks in advance for any help.
I don't think that an Internet forum is the place to get that kind of advice. Ask the IRS or a tax lawyer.
It's March 17th and H&R Block pushed back the release of their form 8936 for another week. Now they're saying it will be available on Friday 3/22. They've been pushing it back a week at a time since February 16th. We said F*** it and bought TurboTax, it worked just fine. It's obvious H&R Block has an internal problem where they can't get the form into their software. Every time we electronically filed, it would kick back with an error message - Form 8936 Not Available Yet.
ven7782
Member
Basic qs on EV tax credit. It says "Modified AGI under $150,000" for single filing. If someone makes AGI of 151000, the std deduction will take it under 150K. In that case is one eligible for the EV tax credit?
No, modified AGI has carveouts for foreign income.
https://www.irs.gov/pub/taxpros/fs-2023-29.pdf
However, you can qualify under your 2023 AGI/ filing status if that helps.
Getting ready to place an order on a LR Model Y. Wife and I had MAGI exceeding limit of $300k last year, which included proceeds of sale from an investment property. For 2024, will be come in right around the income limit. If we take a POS credit off the purchase price I understand we will have to “pay back” the $7500 credit when we file if we end up going over the income limit. Would we also be accessed a penalty or interest in that event?
What options are available to reduce our MAGI? Believe I read we can take up to $3,000 in capital gain losses against our ordinary income? What about declared losses on an investment property?
TIA!
What options are available to reduce our MAGI? Believe I read we can take up to $3,000 in capital gain losses against our ordinary income? What about declared losses on an investment property?
TIA!
ven7782
Member
After all the deductions, if the taxable income dips below 150K, can one claim the tax credit?
NO! AGI - adjusted GROSS income, not TAXABLE income. Adjustments are clearly spelled out on your 1040 and are not the "deductions".
Sorry, I lost track of years, the point was eligibiltyundrr currentir previous year. Can you make additional 2023 schedule 1 deductions to fit under? HSA or IRA contributions might work.
Your tax goes up by the credit amount. It may be treaded the same as any other underpayment . If do, you can adjust your 2024 withholdings once you know you won't qualify.
IRA and HSA contributions lower your AGI.
