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Discussion Starter #1
I purchased my Bolt August 1st. and and I am one of those who prepares my own tax returns. The IRS provides me with Form 8936 with instructions. No problem here, a piece of cake! But, besides attaching Form 8936, is there any other documentation we need to attach? The instructions for form 8936 say "The manufacturer or domestic distributor should be able to provide you with a copy of the IRS letter acknowledging the certification of this vehicle" but it does not say this should then be attached to your return.

My Dealer has never heard of this letter or certificate and I have been unable get an answer even from GM. Has anyone out there actually collected this rebate and if so what documentation was filed with the IRS? Was it only Form 8936 or what, if any, other documentation had to be provided? Am I correct in assuming that the letter of certification is with the IRS and GM, and GM would already have,reported the sale of my car to the IRS on a quarterly basis?

Help, anyone? :)
 

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It is NOT a rebate, it is a non-refundable Tax Credit. You will file Form 8936 it with your 2017 taxes.

List of qualified vehicles here:
https://www.irs.gov/businesses/qualified-vehicles-acquired-after-12-31-2009
(The Bolt is on the list)

No other documentation is required. If audited, you would have to prove you bought the vehicle (you obviously will have that paperwork).
 

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Discussion Starter #3
Thanks, DucRider, a slip of the pen. It is in fact a credit. Now why couldn't GM have spoken so clearly?
Thanks.
 

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I am following this discussion for info and have some to add.

My understanding is that the credit is actually a "Tax Liability Credit".
The point of this is that the "Up To" $7500 credit is a reduction of liability. In other words you need to OWE $7500 or more so that the credit can be deducted from your liability.
If for example you owe $2000 after all your taxes are done the max amount you can get is $2000.
 

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^ yes, Wyvern... you are correct.

When I bought my Volt my total Fed tax liability that year was only $7,200 so that's all I got back not the full $7,500.
 

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To add onto Wyvern's point, it is a federal Non-refundable Tax-Credit. That distinction is important because it can only be applied to a single federal tax year, so if you don't have 7,500 in federal tax liability you lose whatever the difference is between your actual federal tax liability and the 7,500, just like his example. If it was a refundable one, you could apply it across multiple tax years.

Notice I say federal tax liability, it does not apply to state or local taxes. I've seen people believe that the tax credit applies to all taxes but it does not, just federal taxes.
 

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For those of us older than 70.5, we have a Required Mandatory Distribution (RMD) from your tax-deferred assets (mostly IRAs). {You don't have to "spend" it, simply transfer the money to a "post-tax" asset class.} This will usually bump your liability above $7.5K, but it IS a minimum and you can withdraw more to insure qualifying for the full credit. Unlike an IRA purchase, however, you must W/D on or before December 31st.
 

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I am following this discussion for info and have some to add.

My understanding is that the credit is actually a "Tax Liability Credit".
The point of this is that the "Up To" $7500 credit is a reduction of liability. In other words you need to OWE $7500 or more so that the credit can be deducted from your liability.
If for example you owe $2000 after all your taxes are done the max amount you can get is $2000.
The problem I have with that terminology is that many people take that as if the "OWE" means writing a check when filing. They tend to ignore the withholding (or quarterly estimated payments) they've already paid in.

The correct answer to give is indeed tax liability (but it is also non-refundable and does not roll over. Some tax credits do one or the other).
If you use:
1040EZ it is Line 10
1040A Line 39
1040 Line 63

AGI (Adjusted Gross Income) amounts in 2016 that resulted in >$7500 in taxes were $47,050 for filing single or $56,200 if filing jointly.
 

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Discussion Starter #9
Good point, SurgeonFWW. If you are 70.5 years or older, it is worth remembering that if your tax liability is going to be less than the full $7,500, you can increase it to $7,500 by increasing the distribution from your savings, all perfectly legal and, indeed, the right thing to do.
 

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I'm assuming you'll be able to get your credit and that it's still available at the end of the year but please know that it isn't guaranteed. No formal budget in Washington DC has been approved and if 49 Senators are willing to throw 30 million people off of having health insurance, our little $7,500 credit is nothing special.

https://pv-magazine-usa.com/2017/05/17/trump-budget-calls-for-70-reduction-in-renewable-energy-spending/

According to a 2018 budget draft published by energy reporter Amy Harder, the president has proposed cutting fiscal year 2018 funding for the DOE Office of Energy Efficiency and Renewable Energy (EERE) to only $636 million, a 69% reduction from the $2.1 billion it is enjoying during the current fiscal year.... This would include a 70% cut in funding for renewable energy programs to only $134 million. And while the president is proposing cuts to DOE across the board, he is only proposing a 31% cut to nuclear energy programs and a 54% cut to fossil fuel funding at DOE.
Short story, given the current leadership in Washington, anything can come out of the budget process. Yes, in the past when budgets are enacted mid-year, it's been typical that the laws in place on Jan 1 were active until that point. Not always though and precedent would mean nothing with this group.
 

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Yes, we're in the 70.5+ category, have arranged our finances to pay very little income tax. This year, we'll be taking a much larger IRA disbursement to use all the $7,500 tax credit. It just reduces what we'd have had to pay eventually.

And yes, we love our Bolt more each time we use it for everyday errand running. Just today, we discussed we couldn't remember our last stop at the gas pumps with the ICE. But it's not about fuel savings; the Bolt is just way more fun to drive.

In a rational world, we'd sell the ICE and rent for the few highway trips during the year. Definitely would be more cost-effective than maintaining the ICE SUV, insurance and depreciation.

jack vines
 
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