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Look's like, with the Senate passage of tax reform and when the president signs the bill, the Federal tax rebate of up to $7,500 will remain!
 

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Look's like, with the Senate passage of tax reform and when the president signs the bill, the Federal tax rebate of up to $7,500 will remain!
Nope.
It is not and never has been a rebate.
The Tax Credit, however, looks to be retained. And it is more than semantics as the credit requires a minimum tax liability in order for the purchaser to qualify for the full amount. A rebate would be issued without regards to tax liability. It is also worth noting that the EV Tax Credit cannot be carried over to subsequent years (some can).
 

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In my case, my EV tax credit for this year looks like it will just about equal the amount my taxes will be going up with this new "Christmas Present" of a tax bill. I was really hoping for a lower tax bill due next year... Grrrrr :mad:
 

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This will be a boom to lagging manufacturers, like Honda and Toyota, who aren't nearly as close to the 200,000 ramp-down as GM, Tesla, and Nissan...
 
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In my case, my EV tax credit for this year looks like it will just about equal the amount my taxes will be going up with this new "Christmas Present" of a tax bill. I was really hoping for a lower tax bill due next year... Grrrrr :mad:
Yeah, we’re likely in the same boat as well. They did lower the rates on the existing brackets, but the capping of the SALT will hurt us. We’ll have to look into possibly filing separately to see if that gives us any sort of advantage and can claw back some of the projected increase in taxes we owe. Our taxes look to be going up by about $3K right now because of the $10K SALT cap.
 

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Curious if the tax credit can be used by those who choose the standard deductions, which basically doubled, or if EV owners will need to itemize to enjoy this credit?
 

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Curious if the tax credit can be used by those who choose the standard deductions, which basically doubled, or if EV owners will need to itemize to enjoy this credit?
A tax credit subtracts from the 'taxes owed' line. If you have a 7500 or more in taxes owed you get the full use of the credit. If it's less than 7500 you can take the taxes owed to 0 but you can't carry forward the balance of the credit into future years, AFAIK.
 

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A tax credit subtracts from the 'taxes owed' line. If you have a 7500 or more in taxes owed you get the full use of the credit. If it's less than 7500 you can take the taxes owed to 0 but you can't carry forward the balance of the credit into future years, AFAIK.
Thanks Shocker. Now I'm wondering what sort of paper proof I will need for the tax credit on the recent Bolt purchase; my previous EV was a lease.
 

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Thanks Shocker. Now I'm wondering what sort of paper proof I will need for the tax credit on the recent Bolt purchase; my previous EV was a lease.
The IRS form asks for the VIN number. I think that's all the proof you need. I'll be finding out the particulars soon because I plan to file early. With the $7500 credit, I'll be getting a refund instead of having to pay.
 

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The IRS form asks for the VIN number. I think that's all the proof you need. I'll be finding out the particulars soon because I plan to file early. With the $7500 credit, I'll be getting a refund instead of having to pay.
In the unlikely event of an audit, salesman (who has sold many EV's) says the State application for title is sufficient proof as it lists the car as "new". At least it works that way in Michigan.
 

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A tax credit subtracts from the 'taxes owed' line. If you have a 7500 or more in taxes owed you get the full use of the credit. If it's less than 7500 you can take the taxes owed to 0 but you can't carry forward the balance of the credit into future years, AFAIK.
So if purchase a Bolt this year...and we normally get a tax refund...do I just adjust my W4 to maximize the $7500 credit vs not getting any at all?

The IRS form asks for the VIN number. I think that's all the proof you need. I'll be finding out the particulars soon because I plan to file early. With the $7500 credit, I'll be getting a refund instead of having to pay.
Would really like to know how this process went for you.
 

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So if purchase a Bolt this year...and we normally get a tax refund...do I just adjust my W4 to maximize the $7500 credit vs not getting any at all?



Would really like to know how this process went for you.
The tax credit doesn't depend in the slightest on how much you have withheld. It depends only on whether or not your tax return shows tax owed on line 47 of your 1040. If line 47 > 0 then you get the credit up to the amount on line 47 but no more than 7500.
 

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The tax credit doesn't depend in the slightest on how much you have withheld.
Ok...I may have skipped a few steps on my description of maximizing the $7500. So please bear with me if I'm confused...

Are you saying that if I decided to change my federal tax withholding to pay little to no taxes every paycheck (because I adjusted my W4)...and expect to pay uncle sam the full taxes I owe them come tax season (say I owe the gov't $8000)...that I can't apply my $7500 credit towards that amount?
 

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Ok...I may have skipped a few steps on my description of maximizing the $7500. So please bear with me if I'm confused...

Are you saying that if I decided to change my federal tax withholding to pay little to no taxes every paycheck (because I adjusted my W4)...and expect to pay uncle sam the full taxes I owe them come tax season (say I owe the gov't $8000)...that I can't apply my $7500 credit towards that amount?
If you owe $8,000 in taxes you can apply the $7,500 towards that.
If your withholding was $8,000 you'd get a check for $7,500. If your withholding was $0 you'd send them a check for $500.

Reducing the amount withheld from your paycheck is indeed a way to take advantage of the Tax Credit without waiting to file for a refund.
 

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Ok...I may have skipped a few steps on my description of maximizing the $7500. So please bear with me if I'm confused...

Are you saying that if I decided to change my federal tax withholding to pay little to no taxes every paycheck (because I adjusted my W4)...and expect to pay uncle sam the full taxes I owe them come tax season (say I owe the gov't $8000)...that I can't apply my $7500 credit towards that amount?
If by "maximize" you didn't mean make the tax credit as big as possible but instead meant get the tax credit in your pocket sooner then read DucRider's response above.

If you really meant make the tax credit as large as possible, changing your withholding won't change the size of the tax credit you can claim. There are other ways to get the full $7500 if you otherwise would not (though too late for 2017), namely generating more taxable income.
 

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So if purchase a Bolt this year...and we normally get a tax refund...do I just adjust my W4 to maximize the $7500 credit vs not getting any at all?



Would really like to know how this process went for you.
First off, I'm not a tax lawyer, but I've done my own taxes for the last 30 years so you can take my advice for what it's worth.

Changing your W4 withholding usually won't make any difference in your tax liability, which is what matters here.

You need to know your total tax liability for the year. If you file a 1040, it's on line 63. If that is greater than $7500 and your tax situation doesn't change much from year to year then you will end up getting the full $7500 tax credit for buying the Bolt.

If you don't then you will only be able to take as much as is on line 63. This doesn't have anything to do with what you owe or are refunded at the end of the year.

There are some ways you can take on more tax liability for this year in exchange for less tax liability next year. That might save you money because it would help you get a bigger credit this year. You can only take the credit for the tax year in which you bought the car.

Getting the credit is easy. It's a very simple form you file with your taxes.
 

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If you owe $8,000 in taxes you can apply the $7,500 towards that.
If your withholding was $8,000 you'd get a check for $7,500. If your withholding was $0 you'd send them a check for $500.

Reducing the amount withheld from your paycheck is indeed a way to take advantage of the Tax Credit without waiting to file for a refund.
Thanks!
 

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If by "maximize" you didn't mean make the tax credit as big as possible but instead meant get the tax credit in your pocket sooner then read DucRider's response above.

If you really meant make the tax credit as large as possible, changing your withholding won't change the size of the tax credit you can claim. There are other ways to get the full $7500 if you otherwise would not (though too late for 2017), namely generating more taxable income.
Yeah...there's definitely more than one way to skin this cat. I just wanted to make sure I understand the basics and then figure out which will be the best way for my situation.
 

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First off, I'm not a tax lawyer, but I've done my own taxes for the last 30 years so you can take my advice for what it's worth.

Changing your W4 withholding usually won't make any difference in your tax liability, which is what matters here.

You need to know your total tax liability for the year. If you file a 1040, it's on line 63. If that is greater than $7500 and your tax situation doesn't change much from year to year then you will end up getting the full $7500 tax credit for buying the Bolt.

If you don't then you will only be able to take as much as is on line 63. This doesn't have anything to do with what you owe or are refunded at the end of the year.

There are some ways you can take on more tax liability for this year in exchange for less tax liability next year. That might save you money because it would help you get a bigger credit this year. You can only take the credit for the tax year in which you bought the car.

Getting the credit is easy. It's a very simple form you file with your taxes.
Thank you for the info. I'll have to look at our previous taxes and evaluate what I need to do should I decide to get the Bolt this year.
 
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