Any advice on applying for Fed tax credit?

[Mache65]

New tax credit forms requires VIN and VIN verification, no need to add sales papers with tax return. You should save the sales papers in case of audit.

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[RickMachE]

New tax credit forms requires VIN and VIN verification, no need to add sales papers with tax return. You should save the sales papers in case of audit.

Been this way since at least 2018 if not before.

 

[121gigawatts]

I know you realize this, but to be clear to others reading this... the amount you withhold from your paycheck has no bearing on if you will or will not qualify for the $7500. It just changes when you feel the benefit. There's no way you can adjust yourself into qualifying for the full $7500 other than getting your employer to give you a raise.

Personally, I've found that IRS estimation tool to be extremely terrible at estimating withholding for my situation (joint, 2 incomes, maxing out 401ks and other tax plans, index funds). It way overestimated how much to withhold; my napkin math by just using my taxable salary and the tax tables was spot on in comparison.

Not a tax professional. Not financial advice. If you have questions about your tax situation, please talk to a tax professional.

There *are* ways to increase your tax liability other than getting a higher salary. If your tax liability for the year you buy an EV is less than the EV Tax Credit, talk to a tax professional there may be ways to get the full benefit of the tax credit.

Did I mention: Not tax advice. Not financial advice. Consult a tax professional.

 

[kindofblue]

Since you are in CA, you can apply for CVRP $2000 rebate if you qualify, Income limits do apply.
Application has to be submitting within 3 months of purchase date.

Which, BTW, you can only get once. So if you've gotten the CVRP rebate in the past, you're out of luck.

 

[mateo]

I was referring to manipulating your withholding... That's not going to move the needle. But, yes, there are some things you could do even with your employer (e.g., opting out of pretax benefits) to increase your liability. Those you have to carefully consider because now you'll have less monthly income at the reward of getting more of the credit at a future tax filing.

But I would guess that there's a pretty small intersection of people who don't currently qualify, have enough money to move around to qualify, and aren't already savvy enough to figure it out (with or without the help of a professional).

But all that said, I definitely don't disagree with the advice to talk to a professional.

 

[Art]

I finally have my Mach-e. The dealer says that I don't need to do anything special for fed tax credit, just declare it on my 2022 Tax return with a copy of my contract. Is this correct? I thought I previously saw another thread that said, don't wait until 2022 tax filing, but take some other action sooner. Any advice appreciated!

If you bought it in 2022, then it should be taken on your 2023.
If you didn't take it when you filed in April, you can amend the 2023 tax return and resubmit it.

 

[generaltso]

If you bought it in 2022, then it should be taken on your 2023.
If you didn't take it when you filed in April, you can amend the 2023 tax return and resubmit it.

He asked the question well before April and received several timely answers.

 

[mburtsvt]

He asked the question well before April and received several timely answers.

Always good to revisit the classics.

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