What if I don't owe anything in taxes? Should I change my current with holdings if I want to make use of tax credits?if you owe more than $7,500 in federal taxes in 2021,
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What if I don't owe anything in taxes? Should I change my current with holdings if I want to make use of tax credits?if you owe more than $7,500 in federal taxes in 2021,
Changing your current withholdings does nothing for what you owe in federal taxes. If you owe $0 and withhold $15,000, then you still owed $0 and get a refund for $15,000. You would not qualify for the EV tax credit as written today.What if I don't owe anything in taxes? Should I change my current with holdings if I want to make use of tax credits?
It's not about how much you owe at the end of the year. It's about your tax liability for the year. So if you pay $7500 in taxes over the year, and get $0 refund at the end of the year then you can get that $7500 back with this "Tax credit". If you only paid $6000 you only get $6000 back as it's not refundable. Currently.What if I don't owe anything in taxes? Should I change my current with holdings if I want to make use of tax credits?
It seems based on page 33 of the bill that it would lift the current cap to let tesla and GM take advantage of the old credit on and after May 24th, and then in 2022 we have a new credit added on.so this bill will be retroactive and apply to cars sold before the bill passes?
Yes and in 2022 the credit becomes refundable. Which means it doesn't matter what your federal tax liability is. Everyone qualifies for the credit.It seems based on page 33 of the bill that it would lift the current cap to let tesla and GM take advantage of the old credit on and after May 24th, and then in 2022 we have a new credit added on.
Bingo, its like an amendment of sorts to the current rebate rules, with new ones going into affect in 2022Yes and in 2022 the credit becomes refundable. Which means it doesn't matter what your federal tax liability is. Everyone qualifies for the credit.
(Assuming private individual)What if I don't owe anything in taxes? Should I change my current with holdings if I want to make use of tax credits?
I think its from when the Vin is issued but I cant be certainSo then, this retroactive rebate then depends on the actual purchase date, which is when you take delivery etc and not the order date I assume (stupid question but wanted to double check). Seems good for the folks waiting on their Ys right now since the May 24th date has passed.
It's the date the car is delivered to you and you sign the final papers.So then, this retroactive rebate then depends on the actual purchase date, which is when you take delivery etc and not the order date I assume (stupid question but wanted to double check). Seems good for the folks waiting on their Ys right now since the May 24th date has passed.
From what I have seen, I believe you can claim it every year you purchase an EV that qualifies. I haven't seen any limitations on the number of times. However, if someone can quote the opposite, I will be happy to see that reference. I also took advantage of the max tax credit for the PHEV I purchased in 2018, which was $5,836 for a 12.0 kWh battery.Is there a lifetime limit to tax credit? I already claimed $7500 back in 2017 for a S, but have a Y on order right now. If this bill passes, can I reclaim 7500?
If it passes yes, else ya lose out. Take out now and put in a savings or something that gives some interestWhat if I don't owe anything in taxes? Should I change my current with holdings if I want to make use of tax credits?
I like this, but how do you know this? How can we be 100% sure they don’t say the order date has to be after May 24?It's the date the car is delivered to you and you sign the final papers.
Is there any limit on the number of rebates in one tax year? I already have 4500 coming back this year for a Prius purchase. Can I add the model Y 7500 as well if my tax liability is at least the sum (12000)?From what I have seen, I believe you can claim it every year you purchase an EV that qualifies. I haven't seen any limitations on the number of times. However, if someone can quote the opposite, I will be happy to see that reference. I also took advantage of the max tax credit for the PHEV I purchased in 2018, which was $5,836 for a 12.0 kWh battery.
This relies on the existing tax code. The only date that matters is the in service date. Not order or purchase date.I like this, but how do you know this? How can we be 100% sure they don’t say the order date has to be after May 24?
The order date has nothing to do with the gov't. You didn't buy the car. This is strictly a Tesla mechanism for their production supply chain. The "date placed in service" is the day you own and can begin using the car. According to the IRS even if you bought the car, but could not drive it off the lot for whatever reason, it still was not put in service. The day you own and are capable of using the car is what the gov't cares about.I like this, but how do you know this? How can we be 100% sure they don’t say the order date has to be after May 24?