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

[Trips]

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?

 

[TT97]

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?

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?

 

[Trips]

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?

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.

 

[mongo]

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.

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.

 

[markb1]

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.

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.

 

[mongo]

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.

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...

 

[markb1]

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...

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.

 

[mongo]

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.

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.

 

[Big Dog]

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"?

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.

 

[mongo]

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.

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

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.

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.

 

[markb1]

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.

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

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

 

[Dr. J]

 

[mongo]

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?

 

[Silver Ghost]

Do we need anything from Tesla when we file our taxes - to prove we purchased a Tesla? To get the tax credit.

 

[kutkuzak]

Just your purchase information/VIN. They want things like weight and battery size - I just used wikipedia for that.

 

[mongo]

Do we need anything from Tesla when we file our taxes - to prove we purchased a Tesla? To get the tax credit.

Not unless the IRS asks for it later. Then you'll need the dated sales receipt or title or some such.

 

[gochin23]

Just wondering if anyone else have filed their taxes and have received the refund amount?

I filed my return on 2/2 through turbo tax and have been checking "where is my refund" periodically and it's still stuck on Return Received. It's coming up to the 3 weeks, which is the timeline given on when i'd receive the refund however, I understand that with the shutdown there will probably be a delay.

 

[diamond.g]

Just wondering if anyone else have filed their taxes and have received the refund amount?

I filed my return on 2/2 through turbo tax and have been checking "where is my refund" periodically and it's still stuck on Return Received. It's coming up to the 3 weeks, which is the timeline given on when i'd receive the refund however, I understand that with the shutdown there will probably be a delay.

I too am waiting. The wait is lame.

 

[Knightshade]

My return was accepted Jan 30 (using freetaxusa, because TT is insanely overpriced) and my refund posted to my account today.... can't say if that's fast or slow since this is the first time I've had a refund in many many years (and only due to the EV tax credit)

 

[opiuman]

I couldn't find a general tax topic in either the general EV section and the Model specific section isn't great either since this isn't Tesla specific either but...

Filed on 2-3
Showed on IRS WMR site as received on 2-4
Remained that way until today 2-21, shows NO bar status of (received, approved, sent) and the message "...still processing".