First Edition

Banned
Banned
Joined
Dec 20, 2019
Threads
4
Messages
123
Reaction score
149
Location
USA
Vehicles
2021 Mach E - Failure To Launch Edition
Country flag
Guys, the real question is will the Mach e could sustain value as well as a Tesla or not?
According to Ford‘s residuals, the Mach E will retain far less value over time than the comparable Tesla Model Y.
Sponsored

 

AndyS_OSU

Well-Known Member
Joined
Nov 26, 2019
Threads
12
Messages
552
Reaction score
828
Location
Texas
Vehicles
2017 Chevrolet BoltEV
Occupation
Educator
Country flag
So basically just adjust to withhold $7500 throughout the year and then the tax credit just gets used to offset that on our 2021 taxes?
 

JTK44

Banned
Banned
Joined
Oct 30, 2020
Threads
2
Messages
212
Reaction score
109
Location
11050
Vehicles
2021 First Edition Rapid Red
Country flag
So basically just adjust to withhold $7500 throughout the year and then the tax credit just gets used to offset that on our 2021 taxes?
I do not understand your question:

If you withholding tax liability is for example $5,000 and you withhold $7,500, you will receive a refund of $2,500 when you file your tax return as your employer over withheld.

Now same scenario you have a Federal Tax Credit of $7,500. You will get back $7,500 but remember that without the Fed Tax Credit of $7,500 you would have gotten back $2,500. So your next savings is $5,000 not $7,500.

To receive the full advantage of the Federal Tax credit, you need a Federal tax liability of $7,500 or more. Anything less than $7,500 you get back your tax liability.

Another way to look at: you get a tax credit against your tax liability, dollar for dollar, but only up to $7,500.

Hope this clarifies.
 

AndyS_OSU

Well-Known Member
Joined
Nov 26, 2019
Threads
12
Messages
552
Reaction score
828
Location
Texas
Vehicles
2017 Chevrolet BoltEV
Occupation
Educator
Country flag
I do not understand your question:

If you withholding tax liability is for example $5,000 and you withhold $7,500, you will receive a refund of $2,500 when you file your tax return as your employer over withheld.

Now same scenario you have a Federal Tax Credit of $7,500. You will get back $7,500 but remember that without the Fed Tax Credit of $7,500 you would have gotten back $2,500. So your next savings is $5,000 not $7,500.

To receive the full advantage of the Federal Tax credit, you need a Federal tax liability of $7,500 or more. Anything less than $7,500 you get back your tax liability.

Another way to look at: you get a tax credit against your tax liability, dollar for dollar, but only up to $7,500.

Hope this clarifies.
Yeah I should have been specific. If I could claim the credit on my 2020 taxes I would get all of the $7500 back based on my current taxes. I was referring to having to wait to claim the credit in another year if the car is delivered in 2021.

If that is the case I may adjust my withholdings (by the equivalent to $7500 over the course of the year) to get more money per month on my paycheck. I would owe at the end of the year, and the $7500 EV credit would essentially wipe that out. Isn’t that how that would work?
 

JTK44

Banned
Banned
Joined
Oct 30, 2020
Threads
2
Messages
212
Reaction score
109
Location
11050
Vehicles
2021 First Edition Rapid Red
Country flag
Yeah I should have been specific. If I could claim the credit on my 2020 taxes I would get all of the $7500 back based on my current taxes. I was referring to having to wait to claim the credit in another year if the car is delivered in 2021.

If that is the case I may adjust my withholdings (by the equivalent to $7500 over the course of the year) to get more money per month on my paycheck. I would owe at the end of the year, and the $7500 EV credit would essentially wipe that out. Isn’t that how that would work?
What you could do is reduce your withholding by $7,500 in year 2021 so that you would have the money in your pocket in year 2021.

When you file in 2022 for year 2021 you would have "under withheld" by $7,500 which would then be offset by the credit of $7,500.

Personally I would like to get the $7,500 check when I file, but your method is correct.
 


AndyS_OSU

Well-Known Member
Joined
Nov 26, 2019
Threads
12
Messages
552
Reaction score
828
Location
Texas
Vehicles
2017 Chevrolet BoltEV
Occupation
Educator
Country flag
What you could do is reduce your withholding by $7,500 in year 2021 so that you would have the money in your pocket in year 2021.

When you file in 2022 for year 2021 you would have "under withheld" by $7,500 which would then be offset by the credit of $7,500.

Personally I would like to get the $7,500 check when I file, but your method is correct.
Im just thinking I’d rather offset the payment a little throughout the year instead of immediately doubling my current monthly lease cost for the BoltEV and waiting to get the check.

My first preference would be to get the car in 2020 and loan myself the $7500 as a down payment and pay myself back when I get the check back from the IRS in a few months.
 

macchiaz-o

Well-Known Member
First Name
Jonathan
Joined
Nov 25, 2019
Threads
168
Messages
8,157
Reaction score
15,299
Location
🔑 ]not/A/gr8'Place.2.store-mEyePassword[ 👀
Vehicles
MY21 J1 Premium RWD SR
Country flag
Im just thinking I’d rather offset the payment a little throughout the year instead of immediately doubling my current monthly lease cost for the BoltEV and waiting to get the check.
Yes, this is what folks have been suggesting. Let's say you get a new BEV in January 2021. Let's assume that your life stays nearly the same as in 2020, and that you'll continue to have at least $7,500 of tax liability for tax year 2021.

If this is the case, you can receive your tax credit a lot sooner by adjusting tax withholdings right after you get the new car, rather than waiting for over a year later for when you finally file 2021 taxes with the IRS during 2022.
 

UW2

Well-Known Member
Joined
Jan 31, 2020
Threads
10
Messages
347
Reaction score
441
Location
Los Angeles
Vehicles
Mustang Mach E FE
Country flag
X-plan pricing - is it the same regardless of which partner you use? i.e. it would be the same discount whether you used your employer, or the Mustang Club?
 

GoGoGadgetMachE

Well-Known Member
First Name
Michael
Joined
Jan 23, 2020
Threads
153
Messages
5,614
Reaction score
12,654
Location
Ohio
Vehicles
2021 Mach-E 1st Ed., 2022 Lightning Platinum
Occupation
Professional forum cheerleader and fanboy
Country flag
X-plan pricing - is it the same regardless of which partner you use? i.e. it would be the same discount whether you used your employer, or the Mustang Club?
yes - X-Plan is X-Plan, no matter where you get it from.
 
  • Like
Reactions: UW2

Chinsexpat

New Member
First Name
Jonathan
Joined
Nov 28, 2020
Threads
0
Messages
2
Reaction score
2
Location
NJ
Vehicles
Jaguar IPace & BMW M135ix
Country flag
Please bear with me. My first post and a confused Brit living in NJ :)

I maybe brave enough to push the button on a Premium tomorrow. From what i can see there is no chance i would get a car in 2020.

My thoughts were to put down $12,500 deposit - Federal and NJ, but effectively i am having to find that $12,500 elsewhere for now until i get the check from NJ and a Tax rebate. I understand the NJ rebate may take a few months but effectively i need to wait until around April 2022 to see the benefits of the Federal. I would use the options scheme

Hope I am correct so far ?

As someone that has only filed returns for 2 years here in NJ i struggle to understand the Federal side. I file jointly with my wife and each year we tend to get a check back for a few thousand. So I really need some more tax liabilities to help get this $7500 back ?
We have just rx'd some inheritance and will be taking some money out of an their IRA in Jan and that will probably have $10k in tax owing. So does this help ? Sorry for the dumb question, i could ask our HR Block advisor but that will take a while :)
 

Barno

Well-Known Member
First Name
Gary
Joined
Oct 17, 2020
Threads
1
Messages
85
Reaction score
137
Location
Long Island NY
Vehicles
Mach E Premium ER AWD
Country flag
Please bear with me. My first post and a confused Brit living in NJ :)

I maybe brave enough to push the button on a Premium tomorrow. From what i can see there is no chance i would get a car in 2020.

My thoughts were to put down $12,500 deposit - Federal and NJ, but effectively i am having to find that $12,500 elsewhere for now until i get the check from NJ and a Tax rebate. I understand the NJ rebate may take a few months but effectively i need to wait until around April 2022 to see the benefits of the Federal. I would use the options scheme

Hope I am correct so far ?

As someone that has only filed returns for 2 years here in NJ i struggle to understand the Federal side. I file jointly with my wife and each year we tend to get a check back for a few thousand. So I really need some more tax liabilities to help get this $7500 back ?
We have just rx'd some inheritance and will be taking some money out of an their IRA in Jan and that will probably have $10k in tax owing. So does this help ? Sorry for the dumb question, i could ask our HR Block advisor but that will take a while :)
If you really are who you say you are I am more than glad to offer you advice that was given to me many years ago. You should ask your friends and/or family to recommend a CPA that they trust to advise you as to how to proceed from this point forward. If you are a troll, which my gut is telling me you are , then you should lease a Tesla Model Y. I find it a little hard to believe that you are about to purchase or lease a $50,000 plus vehicle, yet you entrust your family’s finances to HR Block. If this sounds harsh I am truly sorry, but I am a native New Yorker and I can be a little bit cynical. Either way, Cheers, and welcome to the forum.’
 

Barno

Well-Known Member
First Name
Gary
Joined
Oct 17, 2020
Threads
1
Messages
85
Reaction score
137
Location
Long Island NY
Vehicles
Mach E Premium ER AWD
Country flag
If you really are who you say you are I am more than glad to offer you advice that was given to me many years ago. You should ask your friends and/or family to recommend a CPA that they trust to advise you as to how to proceed from this point forward. If you are a troll, which my gut is telling me you are , then you should lease a Tesla Model Y. I find it a little hard to believe that you are about to purchase or lease a $50,000 plus vehicle, yet you entrust your family’s finances to HR Block. If this sounds harsh I am truly sorry, but I am a native New Yorker and I can be a little bit cynical. Either way, Cheers, and welcome to the forum.’
P.S Your current vehicles are Jaguar IPace & BMW M135ix?
Sponsored

 
 




Top