gafear
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I couldn't find a similar thread, but I have a (probably) stupid question.
The language IRS uses says that you can only claim the full credit if you have a tax obligation of more than 7.5k. My question, does that mean that I need to withhold less to get underpayment to the government so I own them more than 7.5k?
To simplify
A person earns 100k and has a tax rate of 20% - so the person owes IRS $20k. This person withheld $2k every month. On the tax return this person would get a $4k refund plus the $7.5k EV credit. Is this correct? Or the IRS would not give the credit since there is no money owed to the IRS?
Sorry if thjs has been answered before, I moved here 5 years ago and still don't understand the tax legislation of this country
The language IRS uses says that you can only claim the full credit if you have a tax obligation of more than 7.5k. My question, does that mean that I need to withhold less to get underpayment to the government so I own them more than 7.5k?
To simplify
A person earns 100k and has a tax rate of 20% - so the person owes IRS $20k. This person withheld $2k every month. On the tax return this person would get a $4k refund plus the $7.5k EV credit. Is this correct? Or the IRS would not give the credit since there is no money owed to the IRS?
Sorry if thjs has been answered before, I moved here 5 years ago and still don't understand the tax legislation of this country
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