Future rebates/incentives?

[yngwenli]

It's really surprising many folks are still not clear on how the EV tax credit works.

They should really change it so that it's refundable or at point of sale. For used EVs too.

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[RickMachE]

I’m far from a tax expert, but that’s not my understanding. If you don’t owe the Feds, there’s no credit back. That’s what I think I thought I knew.

As explained above, your understanding is incorrect.

Bob works and earns X dollars. He pays withholding tax. That's irrelevant. He pays estimated tax. That's irrelevant. Based on earning X dollars, whether that's from working or from interest, dividends, and capital gains, Bob's tax owed to the government is $9,000. Therefore, Bob can take his $7,500 tax credit, and owe $1,500 more.

Now let's assume Bob had $9,000 withheld from his paycheck to pay the taxes during the year. So his tax owed to the government is... $9,000. He already paid them $9,000 of it with withholding, so he owes zero more. And he has a $7,500 tax credit. So he gets back $7,500 of the $9,000 he paid through withholding, because the $7,500 is applied first, and is non-refundable.

 

[JamesStew71]

Negative, it’s line 16 on your 1040 form, total tax, if it is $7500 or more you get the full credit even if uncle sugar has to cut you a check.

I usually pay in 13 k and get back 400 ish

 

[JamesStew71]

As explained above, your understanding is incorrect.

Bob works and earns X dollars. He pays withholding tax. That's irrelevant. He pays estimated tax. That's irrelevant. Based on earning X dollars, whether that's from working or from interest, dividends, and capital gains, Bob's tax owed to the government is $9,000. Therefore, Bob can take his $7,500 tax credit, and owe $1,500 more.

Now let's assume Bob had $9,000 withheld from his paycheck to pay the taxes during the year. So his tax owed to the government is... $9,000. He already paid them $9,000 of it with withholding, so he owes zero more. And he has a $7,500 tax credit. So he gets back $7,500 of the $9,000 he paid through withholding.

I hope so , that would be awesome. thanx for the english breakdown?

 

[Motomax]

It's really surprising many folks are still not clear on how the EV tax credit works.

They should really change it so that it's refundable or at point of sale. For used EVs too.

Where do you think the credit comes from? There’s a reason only people who pay enough taxes get it.
my opinion is get rid of the credit all together so I can pay less taxes but we all know taxes never go down.
Not to mention the EV credit realistically goes to the manufacturer anyways.

 

[Dancefreak]

I hope so , that would be awesome. thanx for the english breakdown?

no need to hope. That is the way. End of story.

 

[Triggerhappy007]

I usually pay in 13 k and get back 400 ish

You'll get the $7500 tax credit then unless you have more than 2 kids under 18 or other deductions.

 

[RickMachE]

It's really surprising many folks are still not clear on how the EV tax credit works.

They should really change it so that it's refundable or at point of sale. For used EVs too.

No, not really. Many people are pretty clueless about taxes. A huge percentage of people celebrate their tax refunds as "found money" and blow it on something, not realizing that it was THEIR money to begin with, and that they provided it to the IRS in an interest-free loan.

 

[mburtsvt]

thats what I understand , what I make at my job is taxed, I get a small refund every year, so as I understand the credit will not apply to me

So not true...... If you have a tax liability - you get the credit. If you did not prepare last year by reducing your withholdings - then yes, you made a mistake and will not get the credit....

 

[Bueller]

As explained above, your understanding is incorrect.

Bob works and earns X dollars. He pays withholding tax. That's irrelevant. He pays estimated tax. That's irrelevant. Based on earning X dollars, whether that's from working or from interest, dividends, and capital gains, Bob's tax owed to the government is $9,000. Therefore, Bob can take his $7,500 tax credit, and owe $1,500 more.

Now let's assume Bob had $9,000 withheld from his paycheck to pay the taxes during the year. So his tax owed to the government is... $9,000. He already paid them $9,000 of it with withholding, so he owes zero more. And he has a $7,500 tax credit. So he gets back $7,500 of the $9,000 he paid through withholding, because the $7,500 is applied first, and is non-refundable.

Are you saying you get money back (as in a check) in that scenario? If so, I hope you’re right, but I don’t think you are.

As explained above, your understanding is incorrect.

Bob works and earns X dollars. He pays withholding tax. That's irrelevant. He pays estimated tax. That's irrelevant. Based on earning X dollars, whether that's from working or from interest, dividends, and capital gains, Bob's tax owed to the government is $9,000. Therefore, Bob can take his $7,500 tax credit, and owe $1,500 more.

Now let's assume Bob had $9,000 withheld from his paycheck to pay the taxes during the year. So his tax owed to the government is... $9,000. He already paid them $9,000 of it with withholding, so he owes zero more. And he has a $7,500 tax credit. So he gets back $7,500 of the $9,000 he paid through withholding, because the $7,500 is applied first, and is non-refundable.

If you’re saying in the second scenario that Bob will get a check back from the feds for $7,500, I think you’re incorrect.

 

[RickMachE]

Are you saying you get money back (as in a check) in that scenario? If so, I hope you’re right, but I don’t think you are.


If you’re saying in the second scenario that Bob will get a check back from the feds for $7,500, I think you’re incorrect.

You can think that, but you'd be wrong. Bob is getting back $7,500 of the $9,000 he paid in withholding, because the tax credit on the EV is applied first.

 

[Motomax]

Are you saying you get money back (as in a check) in that scenario? If so, I hope you’re right, but I don’t think you are.


If you’re saying in the second scenario that Bob will get a check back from the feds for $7,500, I think you’re incorrect.

Ignoring special circumstances to keep things simple, The check you get after filing your taxes is a return of overpayment-that’s it. The EV credit reduces your amount owed (which is not the same as what you underpaid) which in turn can result in an overpayment. This means you get a check back.

People get caught up with the non-refundable term. All this means is that you can’t get back more than what you owed/paid. In other words, It’s not a money maker coupon lol. Your tax liability can’t be a negative amount.

 

[Avelli]

Not sure which model of Mach E you ordered, but be aware the CVRP is changing at the end of this week, so you may not get that $2000 either.

 

[yngwenli]

Not sure which model of Mach E you ordered, but be aware the CVRP is changing at the end of this week, so you may not get that $2000 either.

I started a thread about the CVRP earlier (only applies to CA buyers) and I think the CVRP only "cares" that the base Select Mach E is under 45k.

https://cleanvehiclerebate.org/en/faqs/how-often-do-cvrp-program-requirements-change-0

If you look up the Polestar 2 in the eligible vehicles, there is an image overlayed saying "Eligible until 02/24/2022", but the Mustang Mach-e doesn't have that.

In that link above, it also doesn't include the MME as a car expiring from the program after Feb 24th so I think we're safe (as we should be since it's an SUV in my book).

 

[TGIF]

$7,501 would be better.

$7500 would be best! ?

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