Would it really benefit Tesla? I haven't read the details but this quote indicates that Tesla might not qualify:
Now if it said union-made or good wages that would be different...
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US Federal $7,500 Electric Vehicle Credit Expiry Date By Automaker
- Thread starter seattlite2004
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- Model 3
Would it really benefit Tesla? I haven't read the details but this quote indicates that Tesla might not qualify:
Now if it said union-made or good wages that would be different...
That specific qualifier was not listed in what I heard, only in the article. He announced it at a union event, so that little inclusion would rally the attendance. I do not think it will happen to begin with, but will have even less chance keeping it as a union exclusive.
I was just crunching some numbers and it looks like the amount of taxes withheld this year is around 12% compared to about 15% of my income last year. Is that correct on tax policy changes? Based on last years estimate I had no issues getting the full tax credit, but it looks like I will be right on the edge this year for getting the full tax credit. I worked a lot more overtime last year so I am having to adjust a few things to get the full tax credit this year which includes working more overtime.
Was this covered anywhere in the thread previously? I don't want to read through everything in here and didn't see it on the recent posts. My only concern is that I almost always get a refund and that looks to be erased with the tax credit.
Here is what I found. I do make more than the price of the car and own my house. Will leave it at that for now.
2018 Income Tax Brackets
Rate Individuals Married Filing Jointly
12% $9,526 to $38,700 $19,051 to $77,400
22% 38,701 to $82,500 $77,401 to $165,000
24% $82,501 to $157,500 $165,001 to $315,000
32% $157,501 to $200,000 $315,001 to $400,000
Was this covered anywhere in the thread previously? I don't want to read through everything in here and didn't see it on the recent posts. My only concern is that I almost always get a refund and that looks to be erased with the tax credit.
Here is what I found. I do make more than the price of the car and own my house. Will leave it at that for now.
2018 Income Tax Brackets
Rate Individuals Married Filing Jointly
12% $9,526 to $38,700 $19,051 to $77,400
22% 38,701 to $82,500 $77,401 to $165,000
24% $82,501 to $157,500 $165,001 to $315,000
32% $157,501 to $200,000 $315,001 to $400,000
juliusa
Active Member
I'm not sure I understand. If you made $60,000 and your total federal tax bill before the tax credit is $7,000 then you would pay no tax.
Would you be happier/better off if you made $60,000 and your total federal tax bill before the tax credit is $7,700 and you paid $200 in tax??
It is true that if your tax liability is less than $7,500 then working more puts more money in your pocket - no federal taxes!!
Would you be happier/better off if you made $60,000 and your total federal tax bill before the tax credit is $7,700 and you paid $200 in tax??
It is true that if your tax liability is less than $7,500 then working more puts more money in your pocket - no federal taxes!!
Knightshade
Well-Known Member
Your witholdings have literally nothing to do with being able to take the full tax credit or not.
What you prepaid, or owe, is irrelevant.
Is the total tax bill for the year $7500 or more? Is yes you get the full credit knocked off that. If not, you don't.
Then how much you prepaid (which is what withholding really is) determines if you overpaid or underpaid the remaining tax bill and by how much.
What you prepaid, or owe, is irrelevant.
Is the total tax bill for the year $7500 or more? Is yes you get the full credit knocked off that. If not, you don't.
Then how much you prepaid (which is what withholding really is) determines if you overpaid or underpaid the remaining tax bill and by how much.
It's a credit, not a deduction. It won't change your tax bracket, but reduces your tax bill. If you owe less than $7500 in federal income tax, you will owe $0. If you owe $8000, your bill will be reduced to $500.
If your employer withholds as in a normal year, you will get a much larger refund than usual.
Well certainly no federal INCOME taxes. One would still be paying federal payroll taxes on the incremental income amounts.
Any idea if Congress will find two brain cells and change this tax credit so that it has an expiration date for ALL manufacturers and not penalize Tesla for doing the most to build EVs by removing the tax credit from the company that has done the most for EVs while others who dragged there feet receive an unfair advantage next year?
They should perhaps declare 2022 as the expiration date for this credit so everyone can build as many compelling EVs as they can by that date. Most likely by 2022 we will have cost parity with piston cars.
They should perhaps declare 2022 as the expiration date for this credit so everyone can build as many compelling EVs as they can by that date. Most likely by 2022 we will have cost parity with piston cars.
The intent of the tax credit is to give EV tech an incentive to make it more attractive to higher income car buyers until the tech can come down in price to be more competitive with ICE cars. In Tesla's case, that has worked exactly as planned. The other companies have not been as successful. GM has burned up most of their credits selling plug in hybrids, Nissan has advanced their tech some, but they are behind Tesla despite getting a head start. Most of the rest have done little more than the bare minimum to keep CARB happy.
Dr. J
Active Member
Yes, lower withholding in 2018 is normal and due to the tax bill passed in December 2017. Its only relevance to this discussion is the implication that (all else equal) you will owe less in income tax for 2018 than the prior year, which is true for most but not all taxpayers.
You appear to be missing some valuable information--like the 10% marginal tax bracket. For sake of argument, let's say you are MFJ.
Rate Married Filing Jointly
10% Up to $19,050
12% $19,051 to $77,400
22% $77,401 to $165,000
....
Taxable income is the result of: total income minus deductions. On the first $19,050 of taxable income, you will owe $1,905 in tax. On the next tranche (from $19,051 to $77,400), you will owe 12%, up to your taxable income (if less than $77,400). So, $60,000 in taxable income (to pick a number) means: $1,905 + [($60,000-$19,051) * .12] = $1,905 + $4,914 = $6,819 in tax owed.
In this case the taxpayer, after the tax credit, would owe zero in tax, and will receive a refund of all withholding and other tax prepayments. The "excess" ($681) of the $7,500 over the tax owed is lost forever.
To avoid losing any amount of the $7,500 credit, you can increase taxable income in 2018 (by for example, converting a traditional IRA to a Roth IRA, or pushing income from 2019 into 2018) or decrease deductions (which isn't really a strategy anymore for most taxpayers with the greatly increased standard deduction). I would consider working more overtime or doing the IRA conversion if you happen to have a traditional IRA.
Sounds like GM is gonna hit 200K this year:
UPDATE: Chevy Bolt Sales Up 19.6% YTD: GM Confirms 200k In Q4
UPDATE: Chevy Bolt Sales Up 19.6% YTD: GM Confirms 200k In Q4
A General Motors representative also confirmed to InsideEVs that the automaker will hit 200k sales in Q4. According to Megan Soule at GM:
“Correct – we do expect to still hit the 200K EV milestone this year.”
The full tax rebate will therefore be available on purchasing a Chevy or Cadillac plug-in through March, 2019. A 50% rebate would then be available through September, 2019. Finally a 25% rebate will be available until March, 2020. That is, as long as congress can keep their hands off of it.
“Correct – we do expect to still hit the 200K EV milestone this year.”
The full tax rebate will therefore be available on purchasing a Chevy or Cadillac plug-in through March, 2019. A 50% rebate would then be available through September, 2019. Finally a 25% rebate will be available until March, 2020. That is, as long as congress can keep their hands off of it.
Not directed at you @seattlite2004.
That seems wrong (basing it only on consumer purchases)...
Internal Revenue Bulletin: 2009-48 | Internal Revenue Service
TT97
Active Member
You need to have the car delivered (in your possession/ownership) by 12/31.
The law says the car needs to be "put into service" by 12/31 to qualify for the credit. It's either the date you sign the paperwork with Tesla taking possession of the car, or it's the day Tesla files the paperwork with your state's equivalent of the DMV. Exactly which hasn't been explained, but in either case, you need to take possession of the car.
The IRS gives Tesla the authority to tell the consumer the applicable credit (consumer can rely on that, even if OEM is wrong per IRC 30 5.07). Internal Revenue Bulletin: 2009-48 | Internal Revenue Service
Tesla states all credits based on delivery date.
Tesla
No need to concern oneself with the State's paperwork efficiency.
If you want to guarantee delivery you have three days to place your order. You might be able to wait a little bit longer if you get rear wheel drive though, those still says delivery within four weeks.
Tesla sets deadline on new orders to get delivery and full tax credit by end of the year
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