Tax Credits

[Gillie]

I figured I'd ask people who might know better before I go off on my tax guy.

I'm being told by my tax prep guy that the EV tax credits expired and a vote to extend them has been delayed until August. He said that I cannot submit my tax credit on my return. I cannot find such information and have only found this which as far as I can tell does not include the EV tax credit: Grassley, Wyden Introduce 2018-2019 Tax Extenders, Disaster Tax Relief Legislation | The United States Senate Committee on Finance

Am I missing something or is my tax guy wrong?

 

[Gillie]

Maybe I should clarify, I bought my Tesla in December 2018.

 

[reheat]

You definitely can claim the $7500 federal tax credit on your return since you bought the car in Dec 2018. Maybe you need a better tax prep guy.

 

[Gillie]

Yeah, this guy has been unreliable in the past...

 

[Sophias_dad]

Your tax guy is wrong. The $7500 EV credit was not one of the ones listed(see the summary pdf) that expired in 17 and therefore had to be extended into 2018 and 2019.

Someone needs some schooling, and anyone who went to him looking to get their taxes done should be warned to go elsewhere.

 

[Gillie]

This guy ain't cheap ether.

 

[Raphymartinez]

Yeah, this guy has been unreliable in the past...

Question. If the person has proven to be unreliable in the past, why trust him with your taxes again?

 

[Gillie]

It was mostly just an issue with long delays and lack of response. He found an error on a previously submitted tax return so I figured he competent, just slow.

 

[jkoya]

Here is the form:

https://www.irs.gov/pub/irs-pdf/f8936.pdf

 

[patrick40363]

I figured I'd ask people who might know better before I go off on my tax guy.

I'm being told by my tax prep guy that the EV tax credits expired and a vote to extend them has been delayed until August. He said that I cannot submit my tax credit on my return. I cannot find such information and have only found this which as far as I can tell does not include the EV tax credit: Grassley, Wyden Introduce 2018-2019 Tax Extenders, Disaster Tax Relief Legislation | The United States Senate Committee on Finance

Am I missing something or is my tax guy wrong?

Your tax guy is wrong. You should find a more capable tax person.

 

[Gillie]

Thanks. Sometimes I miss things so wanted to get some more input. Anybody know a good tax guy in Indy?

 

[ewoodrick]

I figured I'd ask people who might know better before I go off on my tax guy.

I'm being told by my tax prep guy that the EV tax credits expired and a vote to extend them has been delayed until August. He said that I cannot submit my tax credit on my return. I cannot find such information and have only found this which as far as I can tell does not include the EV tax credit: Grassley, Wyden Introduce 2018-2019 Tax Extenders, Disaster Tax Relief Legislation | The United States Senate Committee on Finance

Am I missing something or is my tax guy wrong?

Time to switch to TurboTax and get good tax advice. This guy obviously does not know his business. At a bare minimum, he should have been able to look it up.

 

[LDMD7]

Thanks. Sometimes I miss things so wanted to get some more input. Anybody know a good tax guy in Indy?

No but I second TurboTax. I’m a CPA and think it’s a quality product. I used to have rental property and a Schedule C business and it wasn’t a big deal.

 

[Gillie]

No but I second TurboTax. I’m a CPA and think it’s a quality product. I used to have rental property and a Schedule C business and it wasn’t a big deal.

That's good to know, that's why I originally went to a tax guy, moved and started renting out my old house.

 

[Sophias_dad]

I use TurboTax myself, and have been doing so for many, many years.

The big problem I have with having a tax guy do taxes is that by the time I have all the data for him, I've done 90% of the work. I can type my numbers into TurboTax(or lately, have TurboTax reach out into ADP, brokerage accounts, and so on) just as well as a tax person can type the numbers into his/her software.

I must admit you gotta be very careful with funky stock transactions where you may have paid a discounted price, or may have received stop or paid taxes up front that may or may not be reported on your W2 as income or taxes paid, lest you overpay or underpay severely.

 

[Ejl80]

I agree. Unless you have an unusual tax situation, many people should be able to figure out turbotax.

 

[InParadise]

If your car was delivered to you in December $7500. If ordered in December and delivered in January $3750.

 

[Ash23T]

I have a stupid tax question. I’ve heard mixed things about the refund... that you’ll only get the $3750 if you owe at least that on your taxes. But what if you don’t owe more than that, do you just get the difference? I usually end up not owing anything or breaking even.

 

[InParadise]

I have a stupid tax question. I’ve heard mixed things about the refund... that you’ll only get the $3750 if you owe at least that on your taxes. But what if you don’t owe more than that, do you just get the difference? I usually end up not owing anything or breaking even.

It is applied to the actual tax you pay before your witholdings are used.

 

[BluestarE3]

I have a stupid tax question. I’ve heard mixed things about the refund... that you’ll only get the $3750 if you owe at least that on your taxes. But what if you don’t owe more than that, do you just get the difference? I usually end up not owing anything or breaking even.

I assume you are referring to your 2019 taxes (to be prepared/reported in 2020), since you mention $3,750 rather than $7,500. Refer to IRS Form 8936 and its instructions. You can claim up to $3,750 credit if your calculated tax amount from line 11 of Form 1040, minus certain personal credits, is $3,750 or more. If the tax amount from line 11, minus certain personal credits, is less than $3,750, then you can only claim that lesser amount .

The credit is calculated before your payroll withholdings and any estimate payments (lines 16 and 17, respectively) are taken into account when preparing your 1040. In other words, your withholdings and estimate tax payments have no bearing in determining the amount of EV credit to which you are entitled.

The referenced line numbers are for the 2018 Form 1040, but they'll likely be the same or similar for 2019 taxes.