MOST American get refunds which means they overpay their tax
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Tax Credit Question Is it true ?
- Thread starter weflybye
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Whether a taxpayer overpays tax is irrelevant to this credit. If a taxpayer has a tax liability of at least $7,500, regardless of how much withholding was paid in or not paid in, and they purchase a qualifying vehicle and are under the income thresholds, they get the credit up the the amount of their tax liability. Period.
Can't tell whether you understand that or not from your prior posts, but you seem to be confusing people and at least one of your posts (#88) was dead wrong.
Occhis
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He continues to think he’s right, but he has no understanding and seems to not want to be educated on this no matter how many people try. So please just ignore him/her/they, as the case may be.
Thanks for the feedback. I don't give a sh*t anymore. I am waiting for someone to post their 1040 who has bought a new Tesla this year. As for asking CPAs advice or the dealer when I bought my first Prius in 2002 they didn't know diddly about it. My accountant missed the line on the FRONT of 1040 where my deduction REDUCED my AGI (like a 401K does). Seeing as how the world "progresses" I would venture a good number of CPAs dont know how this works.
I've read a number of articles how this works. I guess the info is wrong. But I find it hard to believe you will get a refund if your withholdings are close to what you owe. I'd really be interested to see a snapshot of someone's 1040 to see how this works.
Occhis
Member
It works the way the 1040 instructions say it works. I’m sure 100% of all CPAs know how it works. You, however, apparently have no idea how it works. From what I can gather from your posts, you have never prepared your own taxes. I’ve done my own taxes, business and personal, since 1967 so I have a fair idea how tax credits work.
Nothing to do with withholding.
The credit reduces total tax. Effect only depends on underlying tax liability in lines 16 and 17, and other non-refundable credits taken in Lines 19 or 20.
As long as Line 22 would have been full credit or more you'll get the full amount of the credit, otherwise you'll lose some of it.
(Below is 2022. The New Clean Vehicle Credit won't apply until 2023, but based on the current wording it seems Form 8936 will also be used under the new rules.)
Withholding doesn't appear until Line 25.
I used to do my taxes into the 1990s. Then I went to a CPA. This year I used Turbo tax at half of what he charged me. I personally won't need a tax credit as my next car will NOT be covered under the IRA.
I did in 2021. Salary + SocSec + Pension + CD interest. Owed about 8K. Did not withhold enough. Even had to pay a penalty.
Tax credit is “upto” $7500 every year. If you owe $500 then your tax credit will only be $500. If you owe $8000 then your tax credit will only be $7500 then you have to pay the remaining $500. The remaining tax credit you ddnt used from that year will not add up or carry over for the ff year. You will be given again “upto” $7500 to pay the tax you owe for the following year 
Occhis
Member
No. It’s your tax liability for the entire year, line 24 in post #107 above, not what you owe when filing. The amount you under or overpaid during the year, or what you may or may not owe when filing, has no bearing on whether you get the credit or not.
Tax credit is “upto” $7500 every year. If you owe $500 then your tax credit will only be $500. If you owe $8000 then your tax credit will only be $7500 then you have to pay the remaining $500. The remaining tax credit you ddnt used from that year will not add up or carry over for the ff year. You will be given again “upto” $7500 to pay the tax you owe for the following year
Seriously, every year? The car practically pays for itself after 9 years of credit. LOL
Tax credit is “upto” $7500 every year. If you owe $500 then your tax credit will only be $500. If you owe $8000 then your tax credit will only be $7500 then you have to pay the remaining $500. The remaining tax credit you ddnt used from that year will not add up or carry over for the ff year. You will be given again “upto” $7500 to pay the tax you owe for the following year
Dude, STFU. You have no idea what you're talking about....
Instead of owing I got a refund.
A Tax credit does not adjust AGI as a deduction would. It adjusts taxes. Last year I bought a Nissan Leaf last in the year. Instead of owing at the end of the year, after applying the tax credit I received a refund.
Here is the line item form my bank account for the deposit from the IRS
| Mar 8, 2023 | IRS TREAS 310 TAX REF PPD | ACH credit | $6,639.00 |
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Occhis
Member
Nissan needs to switch to Energizer batteries! The drum-beating bunny provides regen.
Wanted to run this by you guys. I get K1 from my S corp and a W2. I always pay taxes because of the K1 income.
I will be filing jointly so my understanding is that 300K-(K1 from 2022 taken in 2023 180K) - (W2 120K Box1) - (second job W2 14KBox1).
This puts me just over 300K limit. I am paying a mortgage and other expenses.
If I am over 300 AGI I rather wait before buying Model Y, but If I would qualify I will pull the trigger.
I will be filing jointly so my understanding is that 300K-(K1 from 2022 taken in 2023 180K) - (W2 120K Box1) - (second job W2 14KBox1).
This puts me just over 300K limit. I am paying a mortgage and other expenses.
If I am over 300 AGI I rather wait before buying Model Y, but If I would qualify I will pull the trigger.
Shouldn't you run this by your Tax Preparer??
(Unless your tax preparer is TurboTax, in which case ... why would you (@$300K+ income with K1))
I would not trust internet advice... You have seen some of the replies... people to which have NO CLUE are posting.
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