2023 purchased in 2022 Qualify for full $7,500?

[PhillyYa]

anyone have any idea on this? some dealers have 2023's on lot, just wondering if it would qualify for the full $7,500 if delivered before the end of the year.

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[sim1]

Yes.

 

[dmastro]

/thread

 

[generaltso]

anyone have any idea on this? some dealers have 2023's on lot, just wondering if it would qualify for the full $7,500 if delivered before the end of the year.

As long as you have enough federal tax liability.

 

[Rory]

As long as you have enough federal tax liability.

Important note: It doesn't matter whether you have any remaining tax to pay when you file your taxes, it is whether your income tax, including what you've had withheld in 2022, is at least $7500. On form 1040 that would be line 18.

 

[PhillyYa]

OK, never mind! I wound up with a 2022 after all. So its no issue.

 

[generaltso]

Important note: It doesn't matter whether you have any remaining tax to pay when you file your taxes, it is whether your income tax, including what you've had withheld in 2022, is at least $7500. On form 1040 that would be line 18.

That‘s why I said tax liability.

 

[Rory]

That‘s why I said tax liability

Agreed, but some people still think "tax liability" is what you pay when filing the tax return. I wanted to underline the difference.

Also, looking at the forms today, I learned that it's not total tax liability, as it excludes child tax credit and self-employment/other taxes from schedule 2 line 21.

 

[JRSNoVa]

Agreed, but some people still think "tax liability" is what you pay when filing the tax return. I wanted to underline the difference.

Also, looking at the forms today, I learned that it's not total tax liability, as it excludes child tax credit and self-employment/other taxes from schedule 2 line 21.

Yes, so 1040 line 24 is a better estimate than line 18.

 

[RickMachE]

Important note: It doesn't matter whether you have any remaining tax to pay when you file your taxes, it is whether your income tax, including what you've had withheld in 2022, is at least $7500. On form 1040 that would be line 18.

What you have had withheld is irrelevant.

John ears $100,000. He withholds $15,000. John's tax liability is $15,000. He takes the full credit.

$15,000 tax liability - $7,500 tax credit = $7,500 remaining tax liability - $15,000 withheld = $7,500 refund.

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