[S10baja]

I was wondering if owners could share stories of their personal "paradigm shift" after owning an electric car for the first time. Preferably Bolt owners, but anyone who has had that first EV ownership experience.

I will be purchasing one if the price is right, and the other thing I am interested in is the $7500 Federal Tax Credit, has anyone filed their taxes for last year and qualified for it?
I have a feeling after checking the Gov't website, that I will not qualify for the tax credit, as I usually get a refund on my taxes. I have some deductions, and basically my withholding during the year is more than I end up owing at the end of the year.:crying:

I know the ownership of an EV is a big change, and I am hoping the tax credit allows me to own a Bolt for a reasonable price. I am very excited in the prospect of owning an EV, and will try to do the deal even if the tax credit doesn't work for me.

 

[DaV8or]

I was wondering if owners could share stories of their personal "paradigm shift" after owning an electric car for the first time. Preferably Bolt owners, but anyone who has had that first EV ownership experience.

I will be purchasing one if the price is right, and the other thing I am interested in is the $7500 Federal Tax Credit, has anyone filed their taxes for last year and qualified for it?
I have a feeling after checking the Gov't website, that I will not qualify for the tax credit, as I usually get a refund on my taxes. I have some deductions, and basically my withholding during the year is more than I end up owing at the end of the year.:crying:

I know the ownership of an EV is a big change, and I am hoping the tax credit allows me to own a Bolt for a reasonable price. I am very excited in the prospect of owning an EV, and will try to do the deal even if the tax credit doesn't work for me.

Reduce your withholdings. Keep your money in your pocket now. However it is a risk and you should be prepared to pay the tax bill in 2018 if the tax credit gets killed by any Trump/GOP tax code overhaul this year. IMO, anybody buying any electric car this year should not be counting on the tax credit. I hope for it, but I don't count on it.

 

[David M O'Rourke]

It is a tax credit it has nothing to do with if you get a refund. You get $7500 reduction in your taxes, if you pay more than $7500 in federal income tax you get to take this credit. Tax refunds are how much you over pay your tax bill, not your tax bill.

 

[tk1971]

Not really a first time EV owner here. My wife has a Leaf, so through that purchase we "got our feet wet" with public chargers. For us that's really a novelty/safety net, since we charge at home. The Leaf also came with a AeroVironment L2 EVSE, which laid the groundwork for my EV (one with the required longer range).

As far as paradigm shifts:

1) No more gas stations, unless I want beef jerky (which I sometimes do). I charge at home every other night to 90%. My commute is 80-90 miles a day. We have it set up so we can charge 2 cars at the same time, one with a L2 and the other with a L1 EVSE. I save at least 10-15 min a week because of this. When I get home on my charge day, there's 70-80 miles to spare.

2) Contemplating not renewing my Costco Membership (this is big!). The majority of my Costco bill was gas. Granted I still have gas cars, both my wife and I won't need gas for the daily grind which would be the majority of our gas expenditure. We also have Sam's Club, which has a less costly membership fee and good enough for toilet paper / paper towels. Our Costco's here in SoCal are really very crowded. I've witnessed people getting into fights over parking. I'd personally clean the toilets than to go to Costco. Who needs that noise, right?

So far, that's what I've got.

 

[Sean Nelson]

It is a tax credit it has nothing to do with if you get a refund. You get $7500 reduction in your taxes, if you pay more than $7500 in federal income tax you get to take this credit. Tax refunds are how much you over pay your tax bill, not your tax bill.

Yes, exactly. Let's say that your company withholds $1000 per month for federal tax - that means you've paid $12,000 to the government of the course of the year. If it turns out that your taxes only came to $10,000, then you'd get a $2,000 refund.

The $7,500 tax credit doesn't come from the $2,000 refund - it comes from that $10,000 in taxes you paid. So in that scenario, the credit would reduce your taxes from $10,000 to $2,500 and since you actually paid $12,000 to the government you'd end up with a $9,500 refund.

If you know ahead of time that you'll be eligible for the refund you can have your employer reduce the amount withheld from your pay each month and therefore benefit from the credit sooner.

 

[S10baja]

Not really a first time EV owner here. My wife has a Leaf, so through that purchase we "got our feet wet" with public chargers. For us that's really a novelty/safety net, since we charge at home. The Leaf also came with a AeroVironment L2 EVSE, which laid the groundwork for my EV (one with the required longer range).

As far as paradigm shifts:

1) No more gas stations, unless I want beef jerky (which I sometimes do). I charge at home every other night to 90%. My commute is 80-90 miles a day. We have it set up so we can charge 2 cars at the same time, one with a L2 and the other with a L1 EVSE. I save at least 10-15 min a week because of this. When I get home on my charge day, there's 70-80 miles to spare.

2) Contemplating not renewing my Costco Membership (this is big!). The majority of my Costco bill was gas. Granted I still have gas cars, both my wife and I won't need gas for the daily grind which would be the majority of our gas expenditure. We also have Sam's Club, which has a less costly membership fee and good enough for toilet paper / paper towels. Our Costco's here in SoCal are really very crowded. I've witnessed people getting into fights over parking. I'd personally clean the toilets than to go to Costco. Who needs that noise, right?

So far, that's what I've got.

So the "no gas station visits" really appeals to me. And I want to "save" money on gas too. I think I could save around 70.00 a month ( usually fill up my car every two weeks at 40.00 each fill up) and have heard others state that the cost for a full charge is around 5.00-10.00.
Do you have an idea how much their electric bill went up since owning a Bolt?

I don't do Costco or Sam's Club. But do like the idea of having a hatch, my current car is a sedan, and I don't like sedans...

 

[S10baja]

Yes, exactly. Let's say that your company withholds $1000 per month for federal tax - that means you've paid $12,000 to the government of the course of the year. If it turns out that your taxes only came to $10,000, then you'd get a $2,000 refund.

The $7,500 tax credit doesn't come from the $2,000 refund - it comes from that $10,000 in taxes you paid. So in that scenario, the credit would reduce your taxes from $10,000 to $2,500 and since you actually paid $12,000 to the government you'd end up with a $9,500 refund.

If you know ahead of time that you'll be eligible for the refund you can have your employer reduce the amount withheld from your pay each month and therefore benefit from the credit sooner.

Now I understand how it works, I usually have a grasp on things like taxes, but that makes sense. It's easy to forget about your overall tax bill; and it's funny that I didn't see it that way, because I do go around work after getting my paycheck saying things like "look at your check BEFORE DEDUCTIONS! That is your real pay!" So that is a real ironic thing for me!

 

[S10baja]

So has anyone taken advantage of the tax credit for a Bolt purchase last year, or a Volt purchase ?
Just curious to hear the end result of it all...

BTW I will have my taxes done soon, and I plan on talking to my tax professional specifically about the Bolt. I will bring in the forms needed, and have him do a dry run with last years taxes, as mine don't vary much.

 

[David M O'Rourke]

Depends on how much you drive

Bolt does 3 to 4 miles per kWh - so if you drive 60 miles a day that is 15 to 20 kWh per day - now check your electric bill and see what you pay per kWh and multiply by 20 for worse case and 15 for best case for your daily electricity cost...

California PG&E charges me .12 cents per kWh to charge between 11 pm and 7 am on weekdays - so depending on how efficiently I drive it is 15 kWh * .12 or 20 * .12 to drive 60 miles a day.

 

[Cardyin]

So has anyone taken advantage of the tax credit for a Bolt purchase last year, or a Volt purchase ?
Just curious to hear the end result of it all...

BTW I will have my taxes done soon, and I plan on talking to my tax professional specifically about the Bolt. I will bring in the forms needed, and have him do a dry run with last years taxes, as mine don't vary much.

I purchased my car between Christmas and New Years and have already received my federal tax refund which included the $7500 credit. Interesting thing about filing is that I needed to know the gross vehicle weight of the car (as the credit only applies if the vehicle weight is below a certain threshold). It took me a little while to locate a number I could fill in on that line.

 

[eops]

So has anyone taken advantage of the tax credit for a Bolt purchase last year, or a Volt purchase ?
Just curious to hear the end result of it all...

BTW I will have my taxes done soon, and I plan on talking to my tax professional specifically about the Bolt. I will bring in the forms needed, and have him do a dry run with last years taxes, as mine don't vary much.

NOw that's what i'm really interested in hearing along with many other people. Will be surprised if the automotive publications out their don't pick up on this because if there's anything we look forward with a big purchase like this its tax credits.

 

[phil0909]

NOw that's what i'm really interested in hearing along with many other people. Will be surprised if the automotive publications out their don't pick up on this because if there's anything we look forward with a big purchase like this its tax credits.

What's to 'pick up on'? This seems like it's slam-dunk simple: the credit is available in current tax law, the Bolt qualifies. You file, you get the credit. If you're paying over $7,500 in federal income taxes, your tax goes down by that amount.

Is there more to it than that??

 

[David M O'Rourke]

Again it doesn't matter how much you pay in taxes - this is a $7500 credit - if you owe $0 in taxes you will get a $7500 refund.

 

[Sean Nelson]

Again it doesn't matter how much you pay in taxes - this is a $7500 credit - if you owe $0 in taxes you will get a $7500 refund.

OK, so I'm not an expert in American tax law by any means, but this does not sound right to me at all.

A "credit" is usually a "reduction in taxes owed". Such reductions do not normally reduce taxes owed "below zero". In other words, if your tax situation results in you having to pay the government $5,000 in taxes, the $7,500 credit will not magically cause the government to owe you $2,500. It would simply reduce the amount of tax you have to pay to zero.

Note that what I'm discussing here is simply taxes payable to the government. It has nothing to do with when those taxes are paid - whether they are paid through payroll withholdings throughout the year or as a separate amount owed or refunded at the end of the year because those withholdings were too high or two low.

 

[DaV8or]

Again it doesn't matter how much you pay in taxes - this is a $7500 credit - if you owe $0 in taxes you will get a $7500 refund.

No, no, no you won't. It clearly says you will not get a cash out and you can not transfer the balance to the next calendar year. So...

If you owe $10,000, you pay $2500
If you owe $7500 you pay $0
If you owe $5000 you pay $0
If you owe $2500 you pay $0

In any of the above cases, there are no refund checks, or transfers of the balance to 2018. This is why those retired folks living on a fixed income can't really make any use of the credit.

 

[TotaledJetta]

Depends on how much you drive

Bolt does 3 to 4 miles per kWh - so if you drive 60 miles a day that is 15 to 20 kWh per day - now check your electric bill and see what you pay per kWh and multiply by 20 for worse case and 15 for best case for your daily electricity cost...

California PG&E charges me .12 cents per kWh to charge between 11 pm and 7 am on weekdays - so depending on how efficiently I drive it is 15 kWh * .12 or 20 * .12 to drive 60 miles a day.

Another way to look at it. A 4 miles per kwh and 12 cents/ per kwh- that works out to 3 cents per mile for energy costs. If you get 3 miles/kwh-that works out to 4 cents per mile. I am running about 3.8 miles per kwh, so just over 3 cents per mile. My old Jetta was getting about 25 m per gallon of premium, which is now $3.00 per gallon or 12 cents per mile.

 

[phil0909]

Again it doesn't matter how much you pay in taxes - this is a $7500 credit - if you owe $0 in taxes you will get a $7500 refund.

I know several others have already corrected David, but I would like to join the line too:laugh:.

 

[bro1999]

Already filed my tax return for 2016 and already received my refund, to include the $7,500 tax credit. My refund was actually way less than $7,500, since I had some tax stuff that had me owing money! Good thing for the tax credit.

 

[David M O'Rourke]

My apologies for the tax mistake - I have experience with other tax credits that were written differently that can go below zero - more complexity in the tax code.

 

[DaV8or]

Here is the relevant part regarding how the credit is used. It is in the instructions for Form 8936 that you have to fill out and include with your return. Specifically it is in the instructions for line 23.

https://www.irs.gov/instructions/i8936/ch02.html#d0e211

It says-

Line 23

If you cannot use part of the personal portion of the credit because of the tax liability limit, the unused credit is lost. The unused personal portion of the credit cannot be carried back or forward to other tax years.

I'm just pointing this out because I don't want anybody to be disappointed, or expecting a $7500 refund check.