It was listed in an article. I will try to find it again. It was mentioning what I said about not everyone gets the entire $7500 credit. Tax liability is all dependent on income, withholding, other income or losses because of stocks and bonds, filing single or married. I agree that most people that can afford a Tesla tend to have higher tax liabilities. But as the article also mentioned many of these upper income individuals have more loopholes to take advantage of to help offset their liability. That is all I was saying.
-
Want to remove ads? Register an account and login to see fewer ads, and become a Supporting Member to remove almost all ads.
eyespii
Member
I thought you were trolling at first, then I thought you were misinformed. Now I think it's both.
Being misinformed is one thing, that's fine. But your refusal to be wrong about the subject is mind-bogging, given that it's going to save you thousands of dollars in tax liability.
I used TurboTax and received a refund of $12574 for the 2016 tax year. $7500 of that was the federal tax credit.
My household has qualified for the entire $7500 refund three times so far.
Neither, I was simply saying I worked directly with government agencies while working for Toyota and one of those things I was involved in is the Tax Credit. I do understand what withholding and liability is.......And I agree with your definitions.You obviously didn't look at similar questions:
Would I get eligible for the the Plug in Electric car tax credit - TurboTax Support
As you see, s/he was getting $2k back, and due to the EV credit, is not getting $9,500 back. I'll do the math, since I know sometimes it's hard. $2,000 + $7,500 (EV credit) = $9,500 refund.
The ... that I left out intentionally, is a case where the person had less than $7,500 in tax liability (not withholdings), then they are not eligible for the full $7,500. Only up to what their tax liability is.
Liability = what you owe the government. The tax credit is based on this.
Withholdings = what you pay monthly/quarterly to offset your April tax bill
I hope this clears it up.
I have no idea what you mean by this, are you trying to insult me or are you bragging that you work for Toyota?
I was simply saying not everyone will be able to get the full refund. That is why it is an up to amount and as the articles said depends on your year end liability on I believe line 41 of your tax filing.
So you agree, it has nothing to do with withholdings. It's based on your tax liability. When you withhold MORE than your liability you get a refund. When you withhold LESS than your liability you send the government a check + possibly interest.
The tax credit is based on liability. So when you get a refund it's your refund + the credit (assuming your liability is more than $7,500). When you need to send the government money, your new refund would be $7,500 (same assumption) - what you owe.
I believe this is wrong. It's only a $3,200 refund due after filing, the persons tax liability goes to $0, but he paid $3,200 from his paychecks.
Fair enough - I have seen some retired Tesla buyers here and others with oddball LLC situations having issues getting the full credit. And more 3 buyers might need to take a closer look at their tax liability before buying to make sure they can get it all, just like those $35k Volt buyers do.
But I think it is incorrect to say most EV buyers don't get the full credit. I would say that most do get the full credit.
Agreed, not everyone.
But most people buying a Tesla have more than $7,500 in tax liability, and their withholdings at the end of the year don't matter or affect the tax credit.
You're safe to assume that most people would drop the price of the car by $7,500 if they get it second hand.
And finally, you haven't shown me proof that the average person only gets back $2,500 from the EV tax credit. All you posted were links where the author made hypothetical examples of end of year tax liability. Those aren't proof of anything.
OMG! Look at the damn tax form! The tax credit shows up on line 54 of form 1040 (2016 version). This impacts the total tax liability. Notice this line is before you take account of any tax payments you made during the year (tax withholdings). Do you see line 56? It says "Subtract line 55 from line 47. If line 55 is more than line 47, enter -0-." If your credits are greater than your tax liability (before payments), this is where the credit gets capped. After you calculate your total tax, then you apply any payments and determine if you need to pay more or if you get a refund. I wasted my time reading all your articles and they all say the same thing: you are wrong! You are confusing tax liability with the over/under after withholding payments.
I got a $10k federal tax refund. If I didn't buy the Tesla in Dec 2016, I would have only received a $2,500 refund.
SDRick
Active Member
Even your recent post shows that you do not fully understand withholding.
I think we can put this tax debate to bed if we can all agree that withholding has nothing to do with the tax credit itself.
Any disagreements?
I am done beating a dead subject. The Articles clearly explain the process and is exactly what I had been saying.
This is a simple explanation: Just watch the first minute of this video.
As He Says At The 28th Second Of The Video, WRONG. You Don't Just Get $7500 Back.
Good Luck To Everyone. I Was Not Trolling Here And Had No Intention Of Getting Off The Subject Of Trade In Values.
This is a simple explanation: Just watch the first minute of this video.
As He Says At The 28th Second Of The Video, WRONG. You Don't Just Get $7500 Back.
Good Luck To Everyone. I Was Not Trolling Here And Had No Intention Of Getting Off The Subject Of Trade In Values.
Did you listen to the next 30 seconds? It reduces the LIABILITY, not the withholds.
No one is arguing that you need at least $7,500 in liability. Tax liability is independent of tax withholdings.
Liability = what you owe uncle sam
Withholding = what you paid throughout the year
At April Tax Time If liability>withholding, you owe uncle sam money! If liability<withholding, you get a refund!
SDRick
Active Member
Most hilarious tread on the forum!!!
I still can't be sure if he's a troll or a tard...the suspense is killing me!
Just when I'm positive it's just trolling, he sucks me back in with those specific details. True talent!
I still can't be sure if he's a troll or a tard...the suspense is killing me!
Just when I'm positive it's just trolling, he sucks me back in with those specific details. True talent!
Pezpunk
Active Member
Haha I have never run into someone so locked in to such an easily-disprovable assertion. This has to be a record. The rebate applies to your entire tax liability for the year and has NOTHING to do with how much a person withheld. Almost every Tesla buyer gets the full $7500 rebate (until it expires).
Including me -- I received a Federal rebate this year of $60,000, which INCLUDED the $7500 EV credit. (I was having a ton withheld because of a huge windfall 2 years ago).
You're just digging your credibility hole deeper and deeper.
Also, using eBay auctions to judge the value of a used car is utterly ridiculous. I collect pinball machines and the most annoying aspect to the hobby is ignorant noobs who see some ridiculous overpriced example on eBay that didn't even sell, and then decide theirs is worth as much as that asking price. It's a running joke in that hobby, and I'm sure plenty of others.
Including me -- I received a Federal rebate this year of $60,000, which INCLUDED the $7500 EV credit. (I was having a ton withheld because of a huge windfall 2 years ago).
You're just digging your credibility hole deeper and deeper.
Also, using eBay auctions to judge the value of a used car is utterly ridiculous. I collect pinball machines and the most annoying aspect to the hobby is ignorant noobs who see some ridiculous overpriced example on eBay that didn't even sell, and then decide theirs is worth as much as that asking price. It's a running joke in that hobby, and I'm sure plenty of others.
Last edited:
You would think the multiple testimonials posted here by people receiving the full 7500, (myself included, twice) would impact your thinking, but no, which is why I have to just settle on troll as explanation.
That part about not knowing how to read applies to you sadly. OTOH it seems that at this point you are just purposely obtuse, so we will just mutually agree that the other guy is an idiot and leave at that.
Similar threads
- Question