My Mach E was supposed to be delivered yesterday. Dealer has no clue where it is. Now what?

[mburtsvt]

So, not to rain on your parade but that's not how it works. It's not based on you owing $7500 on April 15th, and your withholdings would have nothing to do with it

It has to do with you having a tax liability at all. Even if you get a refund every year, if you make enough money to buy a Mach E, you likely have a $7500 tax liability

For example, if you had $15,000 in taxes withheld throughout the year, but at the end of the year only owed $13,000 in taxes, you'd get a refund of $2k in April. That doesn't mean you didn't have a tax liability--you did, of $13,000

In the above example if you reduced your withholding so that you only paid $10,000 throughout the year your tax liability didn't increase, it was still $13,000

In the above example, instead of getting a $2k refund in April, you would've gotten a $10,500 refund

Thank God you posted this. Im shocked on how many people don't realize or understand this. At the end of the day - at the least you could do is lower your paycheck withdraws to make sure to get the full credit. This is not rocket science people - just use math.

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[pooter03]

So, not to rain on your parade but that's not how it works. It's not based on you owing $7500 on April 15th, and your withholdings would have nothing to do with it

It has to do with you having a tax liability at all. Even if you get a refund every year, if you make enough money to buy a Mach E, you likely have a $7500 tax liability

For example, if you had $15,000 in taxes withheld throughout the year, but at the end of the year only owed $13,000 in taxes, you'd get a refund of $2k in April. That doesn't mean you didn't have a tax liability--you did, of $13,000

In the above example if you reduced your withholding so that you only paid $10,000 throughout the year your tax liability didn't increase, it was still $13,000

In the above example, instead of getting a $2k refund in April, you would've gotten a $10,500 refund

To be fair, the last 3 months have been hectic for me as my company just moved to a new office and I've been exhausted on a nightly basis. I'm not too upset as I wanted to lease anyway.

 

[mixduptransistor]

at the least you could do is lower your paycheck withdraws to make sure to get the full credit

Well, again, your withholding on your paycheck has *nothing* to do with it, it has to do with how much actual tax you owed to the IRS, not how much you paid over the previous year

To be fair, the last 3 months have been hectic for me as my company just moved to a new office and I've been exhausted on a nightly basis. I'm not too upset as I wanted to lease anyway.

No, I get it it. I didn't jump through all the hoops to get X-Plan financing because I'd have to wait and just went with a traditional finance instead of Ford Options because I got a great rate by buying an extended service plan so they could make their number, which I will cancel in month one and get a full refund. Looks like you got a good state level rebate too, which some of us down south don't get.

 

[mburtsvt]

Well, again, your withholding on your paycheck has *nothing* to do with it, it has to do with how much actual tax you owed to the IRS, not how much you paid over the previous year



No, I get it it. I didn't jump through all the hoops to get X-Plan financing because I'd have to wait and just went with a traditional finance instead of Ford Options because I got a great rate by buying an extended service plan so they could make their number, which I will cancel in month one and get a full refund. Looks like you got a good state level rebate too, which some of us down south don't get.

Hold on here....If you earned money and had NO TAX TAKEN OUT, (say you were a 1099 contractor), you would owe income tax!. If you had a $7500 TAX CREDIT you would own what the tax was on your income minus the Tax credit. Same applies to if you had lowered your paycheck withdrawals to make sure you had the $7500 tax credit covered. At the end of the day with a little planning, no one should miss out on the credit.

 

[malba2366]

Hold on here....If you earned money and had NO TAX TAKEN OUT, (say you were a 1099 contractor), you would owe income tax!. If you had a $7500 TAX CREDIT you would own what the tax was on your income minus the Tax credit. Same applies to if you had lowered your paycheck withdrawals to make sure you had the $7500 tax credit covered. At the end of the day with a little planning, no one should miss out on the credit.

You are confusing tax refund and tax liability. You have the same tax liability despite your withholding (not including potential underpayment penalties). If you have a tax liability of $7500 then you will benefit from the tax credit in its entirety. The tax liability is line 24 on form 1040 - if that number is greater than $7500 you will get the credit in it’s entirety - it has absolutely nothing to do with if you owe taxes or are getting a refund after filing.

 

[mixduptransistor]

Hold on here....If you earned money and had NO TAX TAKEN OUT, (say you were a 1099 contractor), you would owe income tax!. If you had a $7500 TAX CREDIT you would own what the tax was on your income minus the Tax credit. Same applies to if you had lowered your paycheck withdrawals to make sure you had the $7500 tax credit covered. At the end of the day with a little planning, no one should miss out on the credit.

Okay, these are fictional numbers. But bear with me
Let's say you make $100,000 a year and have 30% taken out per month. That means at the end of the year, you had $30,000 taken out

Now, after you do your taxes, do all of your deductions, and everything else, they determine you really had a tax rate of 25%, meaning you only really owed $25,000 in income taxes. You would get a tax refund in April of $5,000. However, that $5000 does not mean you had a negative tax liability. Your tax liability was $25000. With the $7500, you would actually get a $12,500 refund

Say you only had 20% taken out. That means you paid $20,000 in taxes, but they determined you owed the same $25,000. That means you *owe* $5000 in April. However, that $5,000 is not your tax liability. The tax liability is still $25,000. In this example with the $7500 credit you would get $2500 back. In essence, the tax credit is as if you had an additional $7500 withdrawn throughout the year

BUT, if you did not make a lot of money, and ended up with a tax liability of under $7500, you would only get back up to the amount of your tax liability. Say you made $25,000 and had a tax liability of $1500, you would only get $1500 taken off your taxes because it is a *non-refundable* credit so it will not go beyond the amount of tax you have to pay

This is in contrast to the COVID stimulus, which is refundable, meaning even if you paid zero taxes you get the COVID money

 

[mburtsvt]

You are confusing tax refund and tax liability. You have the same tax liability despite your withholding (not including potential underpayment penalties). If you have a tax liability of $7500 then you will benefit from the tax credit in its entirety. The tax liability is line 24 on form 1040 - if that number is greater than $7500 you will get the credit in it’s entirety - it has absolutely nothing to do with if you owe taxes or are getting a refund after filing.

I think we are on the same page, just dealing with semantics here. Nowhere did I say anything about a tax refund. I do know the difference between the two. You create a tax liability by earning income, (among other things). You create a tax credit by having money taken out of your paycheck to cover the liability at the time the tax is due, (April 15th). Lowering the tax credit amount, (money taken out of your paycheck), raises your tax liability. The issues many of us face is to make sure we maximize the credit we get for buying the Mach E. That can be done by lowering your paycheck withdrawals, selling stock for capital gains, taking a eligible 401(k) withdrawal, etc.

To be clear you can only claim a credit up to the amount of your tax liability in the year you claim the credit. It is not a federal rebate. Instead, it is an EV tax credit that reduces the federal tax liability on your income. Making sure that credit is fully taken requires planning. The worst thing you could do is purchase on impulse a BEV at the end of the year with no pre-planning or understanding of the tax consequences.

 

[mixduptransistor]

. You create a tax liability by earning income, (among other things). You create a tax credit by having money taken out of your paycheck to cover the liability at the time the tax is due, (April 15th). Lowering the tax credit amount, (money taken out of your paycheck), raises your tax liability.

You still haven't grasped it. That is not how it works

 

[Ciero]

I think we are on the same page

I think you're in a whole 'nother book. ?

The issues many of us face is to make sure we maximize the credit we get for buying the Mach E. That can be done by lowering your paycheck withdrawals

mixduptransistor laid it out perfectly. Lowering your paycheck withdrawals doesn't do what you are saying it does. Getting taxed on income to the point where you have to pay the federal government >$7500 is typically how you'd make sure you get the maximum credit.

 

[malba2366]

That can be done by lowering your paycheck withdrawals, selling stock for capital gains, taking a eligible 401(k) withdrawal, etc.

Lowering your withdrawal has nothing to do with your tax liability, ergo your qualification to take advantage of the tax credit. Your tax liability is line 24 on your form 1040...that is how much tax you must pay based on your income and deductions. Your paycheck withdrawals go towards paying your tax liability, and at the end of the year you either get a refund or have to make an additional payment depending on whether or not your withdrawals meet your liability. The EV tax credit counts as a payment towards the liability.

 

[Stang68]

Lowering your withdrawal has nothing to do with your tax liability, ergo your qualification to take advantage of the tax credit. Your tax liability is line 24 on your form 1040...that is how much tax you must pay based on your income and deductions. Your paycheck withdrawals go towards paying your tax liability, and at the end of the year you either get a refund or have to make an additional payment depending on whether or not your withdrawals meet your liability. The EV tax credit counts as a payment towards the liability.

Right, so in my case I usually pay estimated federal and state taxes every quarter to make sure I am whole with the IRS come April, but this year I will not be paying those estimated payments to ensure I have at least $7,500 liability.

 

[timbop]

Right, so in my case I usually pay estimated federal and state taxes every quarter to make sure I am whole with the IRS come April, but this year I will not be paying those estimated payments to ensure I have at least $7,500 liability.

The estimated payments have zero to do with your liability, only if you get to keep your own money now or get it back when you file your taxes. The amount of your liability is on line 12 of your tax return, and that is determined by your taxable income on line 11b being looked up in the rate table for your filing status. Taxable income is gross income minus deductions, which does not include the BEV rebate.

The $7500 is reduced from the computed tax on line 12, although it cannot go BELOW zero

 

[JayBee]

If they look into their order fulfillment system it gives them "Vehicle Visibility". They can tell which train car it is on and when it will come. You need to provide them with the VIN for your order.

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