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US Federal $7,500 Electric Vehicle Credit Expiry Date By Automaker

Discussion in 'Model 3' started by seattlite2004, Feb 8, 2018.

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  1. Trips

    Trips "Boring bonehead questions are not cool. Next?"

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    I just finished up my rough taxes as I knew I was going to be close. $7,400 extra is what I expect to get back.

    I wonder how many people are going to be surprised when they don't get the full $7,500?
     
  2. TT97

    TT97 Active Member

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    When you say $7,400, does that mean your tax obligation is $0 for the year and your work collected $7400 from you or do you mean you would have owed the IRS $100 if you didn't have the credit?
     
  3. Trips

    Trips "Boring bonehead questions are not cool. Next?"

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    Do to a couple deductions and the nature of my income I only owed $7,400 in Federal Income Tax. Based on my understanding I will not get the full $7,500 as I did not owe that much.
     
  4. mongo

    mongo Well-Known Member

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    Yep, and, due to the shutdown, it may be a while till you get that 7,400 back. However, you can file and use the refund toward your 2019 taxes and save the withholding now.
     
  5. markb1

    markb1 Active Member

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    It's not about what you owe, it's about your total tax liability. So, for instance, if your total tax is $10,000, and your paid $9,000 in paycheck withholding, you will owe $1,000. Now subtract the tax credit, and your total tax will be $2,500, and will get a refund of $6,500. You're $7,500 richer than you would have been without the credit!

    But maybe it's just your terminology that's in error, and you do understand how the tax credit works.
     
  6. mongo

    mongo Well-Known Member

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    I think owed is appropriate. I owed 8k in taxes in 2018 is the total. I owe the IRS 2k is the amount they would send in with their 1040...
     
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  7. markb1

    markb1 Active Member

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    If you use the word "owe" to mean two different things, I can't tell what you're talking about. Form 1040 uses the verbiage "total tax" and "amount you owe". Total tax is what matters in determining whether you would get the full tax credit.
     
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  8. mongo

    mongo Well-Known Member

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    Sure you could, especially in context.
    OP -> "Do to a couple deductions and the nature of my income I only owed $7,400 in Federal Income Tax"
    Would a reasonable person say, I'm only $7,400 behind on my tax payments"?

    Owed is past tense, as in they no longer owe. However, they have not filed their taxes yet, thus it would not be referencing a future payment.
     
  9. Big Dog

    Big Dog Member

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    No, but a reasonable person would say, 'I've completed my taxes [last week] and....I only owed $7,400. ' Does that mean the reasonable person had a tax liability of only $7,400, or the reasonable person had to write a balance due check of only $7,400.

    Concur with Markb. The 'context' is definitely unclear.
     
  10. mongo

    mongo Well-Known Member

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    For context, read the poster's previous posts (same page so you don't need to scroll far) it is fully not ambiguous.

    One does not get back what they didn't need to pay at the end. Their total liability was 7,400 and they restated that in the post in question.

    Markb was critiquing the poster's terminology without any basis to say they were incorrect. I took issue with that.

    If you both still claim ambiguity, then I say claim ambiguity on the side of the poster's interpretation and, if needed, phase your response to clear of the potential miscommunication.

    Such as:
    Yes, if your total federal tax bill for 2018 was $7,400, then you will only utilize $7,400 of the $7,500 tax credit.
     
  11. markb1

    markb1 Active Member

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    I was clear on the potential miscommunication. At the end of my post, I said:

     
  12. Dr. J

    Dr. J Member

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    [​IMG]
     
    • Funny x 1
  13. mongo

    mongo Well-Known Member

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    It funny.
    My issue was that the poster's terminology was deemed "in error", when it wasn't. Reading the thread, it wasn't even ambiguous. Further, they didn't even ask a question about their status to respond to. They made a general question about people not realizing that it is not a refundable credit. Then they were critiqued on their *response* to someone elses reply.

    It's like me saying you're wrong for not including the alt-text or permalink to xkcd.
    "Maybe it's just your posting style that is in error, and you understand how attribution and web income work".

    Anyway, felt like a non-useful drive-by critique of something that wasn't wrong, and rubbed my fur the wrong way, but this is in no way helpful to the group. Shall we let it drop (Like the Beastie Boys in Intergalactic) and big dogs let it lie lay rest?
     
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