Good point. Deleivered in December 2018 so I'm expecting the full $7,500 since I have at least that much in tax liability.
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Tax Credits
- Thread starter Gillie
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srs5694
Active Member
Note that a car delivered in January of 2019, and therefore eligible for the $3750 credit, will generate that credit for 2019, so it will be dealt with in about a year, not right now. (I realize the OP says his car was delivered in December of 2018; I'm just making this comment in case it might apply to somebody else.)
Others have already stated it... but I'll just put it another way.
It is unlikely that you "end up not owing anything or breaking even" in terms of your tax liability.
What you are referring to is your refund/payment due when filing your taxes, which, as others pointed out, is when you calculate your full tax liability and then balance that vs the withholding that has been taken from your paycheck all year.
The $3750 will be deducted from your tax liability.
This brings up a point that some folks don't consider: Let's say someone has their withholding set up correctly like you seem to and your withholding is closely aligned to your actual liability (aside: people should not be excited about a refund at tax time! It means their withholding wasn't set up correctly!!). If you bought a Tesla already this year or plan to before June, you don't need to wait until next year to get the benefit. Just adjust your withholding $3750 lower and you can get that cash in your pocket sooner!!
Cash is cash, but with that being said, I would think that "most people" who are not accountants would prefer to receive money in a lump sum. Rhetorical question... if someone owed you (a person) $2400 that you gave them all at once, would you prefer they say " I will pay you $200 a month for a year", or, "I will pay you $2400 at the end of the year"?
My guess is, most would prefer the $2400 in one payment, not $200 a month. I do agree that its best to adjust withholdings so that you get a small refund at the end of the year, as a large refund means that you loaned the IRS a bunch of money tax free. Still, its better for most to get a small refund than owe a small amount. People would rather PAY in small installments, but receive money in larger chunks, even though "money is money".
My guess is, most would prefer the $2400 in one payment, not $200 a month. I do agree that its best to adjust withholdings so that you get a small refund at the end of the year, as a large refund means that you loaned the IRS a bunch of money tax free. Still, its better for most to get a small refund than owe a small amount. People would rather PAY in small installments, but receive money in larger chunks, even though "money is money".
Then most people are idiots. Haha.
The answer should always be pay me back $200 each month. It should really be, pay me back with interest...and then that person would have an incentive to pay me back as quickly as they could.
Why would people want to have someone else hold their money in their bank account rather than have access to it right now?
The whole concept of "time value of money" is that $1 today is more desirable than $1 a year from now.
Not 2500 anymore in MA.... it changed to $1500 on Jan 1, 2019, and is ONLY available for purchases less than $50k now!
srs5694
Active Member
Not any more. There used to be one, but it ran out of money about two years ago. Actually, it ran out at least two or three times, but the legislature kept putting more money in the coffer -- until it didn't. I'm not too upset, since I got the benefit when I leased my Volt.
Thanks very much. Of course I was going on what the Delivery advisor told me. They told me lots of stuff that wasn’t true. Oh well. My total was less than 50k so there’s that.
You have over $10K in sales tax to itemize? I'm pretty sure the tax code is and previously was sales tax OR state income tax, local income tax, and property tax.
On edit: I think I'm wrong. I think it's property tax AND either sales or income... So if you are in a state where here is no income tax then post makes sense. My bad.
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