Multiple tax credits, husband and wife tax credits.

[RickMachE]

I don't believe that Congress is going to limit people to one vehicle per household receiving the tax credit. Maybe two, not one.

We may be buying two in a year - if the ordered Mach-E is perfect, and the resale market still booming, we would consider selling ours and taking the ordered one, and then possibly a Lightning. Right now we don't have a clue if the Lightning is even going to be made in 2022, so it's all silly speculation.

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[Mach1E]

I don't believe that Congress is going to limit people to one vehicle per household receiving the tax credit. Maybe two, not one.

We may be buying two in a year - if the ordered Mach-E is perfect, and the resale market still booming, we would consider selling ours and taking the ordered one, and then possibly a Lightning. Right now we don't have a clue if the Lightning is even going to be made in 2022, so it's all silly speculation.

It says “per taxpayer,” not per household in the latest bill.

 

[RickMachE]

It says “per taxpayer,” not per household in the latest bill.

That it does.

So if a husband and wife buy two EVs, and they title them Him and Her, they're fine. If they put both in one name, they're not.

 

[Draconfier]

That it does.

So if a husband and wife buy two EVs, and they title them Him and Her, they're fine. If they put both in one name, they're not.

Unless you file jointly, which is what the 1 vehicle limit is based off of from your previous year's modified adjusted gross income. If you filed separately the year before then perhaps you would be eligible.

 

[Stella]

I'm simply saying that you won't fully benefit from the tax credit on both vehicles if you don't owe at least $15k in taxes to negate all $15k. If you owe less ("up to"), you will miss out on the difference. For example, if you owe just $10k, you leave a $5K credit on the table.

I won't owe $7500 in taxes, so I won't fully benefit from the credit. Sure, all I do owe will be negated, but I will likely leave about $1-2k on the table. It'll be nice to get back all of the taxes I will pay (perhaps $4k total).

It's a bit of false advertising (technically misleading, not false, but let's call it like it feels) on EV manufacturers' part, subtracting the tax credit from the vehicle price. It makes it seem like you will get all $7500 in your pocket. It's much more complicated.

Don't take it wrong. How you folks hide money from uncle Sam. I am sure if you are talking about buying 60 k car you make enough money to owe way more than $7500.00 to Feds.

 

[Mach1E]

Don't take it wrong. How you folks hide money from uncle Sam. I am sure if you are talking about buying 60 k car you make enough money to owe way more than $7500.00 to Feds.

Plenty of retirees have a lot of money and assets, but have very little taxable income.

 

[Stella]

Many people get confused on the tax credit. They confuse tax owed with tax liability.

You earn income. Your earnings have a tax liability. 1040, line 24, tax owed.

Your tax credits are taken against this number. Tax withholding is irrelevant here.

People confuse taxes they have to pay (tax owed minus withholding) as taxed owed. No. Line 37 is what you owe after tax credits, withholding, and want other tax payments.

Examples:

A) Don earns X dollars a year. He pays $5,000 to the IRS via withholding. Don's tax owed, line 24, is $6,000. Without a tax credit, Don would owe the IRS $1,000 ($6,000 - $5,000). But Don bought a Mach-E, and has a $7,500 tax credit coming. $6,000 tax owed - $7,500 tax credit = zero, since the credit is "non-refundable". Don will get back the $5,000 he paid in tax withholding, but lose $1,500 of the $7,500 tax credit.

B) Mary earns X dollars a year, and pays $6,000 to the IRS via withholding. Mary's tax owed, line 24, is $13,000 (so in reality, Mary UNDERWITHHELD taxes and would have a penalty owed to the IRS plus $7,000 in taxes owed. But Mary bought a Mach-E. So $13,000 - $7,500 = $5,500 - $6,000 = $500 that Mary will get back from the IRS, and she will not owe a penalty.

Rick, I took screen shot of your post and would ask every idiot who argue about EV tax credit, just read it. So i don't have to break it down for them.

 

[Mach1E]

Rick, I took screen shot of your post and would ask every idiot who argue about EV tax credit, just read it. So i don't have to break it down for them.

I blame the government for calling it “non refundable.”

The only way most people understand
“tax refunds,” is based on the check they get when they file taxes.

It just confuses people. Just call it a tax credit you can’t carry forward. Use it or lose it.

 

[mamejunkie]

Hmmm...good to know. For some reason, I thought it was only one per year. Thats why I just placed the order for my second Mach-E now for expected delivery in early 2022. If I had known, would have got a pair from the get go.

 

[RedStallion]

Plenty of retirees have a lot of money and assets, but have very little taxable income.

Few have all their savings tax free, most owe capital gains tax or income tax on their retirement accounts. It's enough to withdraw the amount equal to the car price to incur a tax liability surpassing the tax credit.

 

[jojomontag]

Don't take it wrong. How you folks hide money from uncle Sam. I am sure if you are talking about buying 60 k car you make enough money to owe way more than $7500.00 to Feds.

Who is "hiding money"? If the government provides a way to owe less (or have a lower liability), no one is "hiding money". And some people save money for new cars, or at least down payments for a new car, so to say that someone buying a $43k - $60k car makes enough money to owe more than $7500 in taxes is not taking many factors into account. My Mach E was $48k, not $60k, and I traded in a vehicle for it. I don't make a 6 figure income.

"Hiding money" involves being paid under the table or keeping money in accounts that the Fed cannot access, which is illegal. Don't ignoranty and falsely accuse people who utilize the law to make the most of government provided incentives.

 

[Stella]

Who is "hiding money"? If the government provides a way to owe less (or have a lower liability), no one is "hiding money". And some people save money for new cars, or at least down payments for a new car, so to say that someone buying a $43k - $60k car makes enough money to owe more than $7500 in taxes is not taking many factors into account. My Mach E was $48k, not $60k, and I traded in a vehicle for it. I don't make a 6 figure income.

"Hiding money" involves being paid under the table or keeping money in accounts that the Fed cannot access, which is illegal. Don't ignoranty and falsely accuse people who utilize the law to make the most of government provided incentives.

Ok Brother please accept my apologies!

 

[RickMachE]

Many people confuse income with assets. I could have $3 million in retirement accounts and not be working due to being laid off. I would get unemployment insurance, and be eligible for things like aid on making medical insurance payments.

As a retiree, I could have $3 million in retirement accounts and still be eligible for the lowest Medicare cost, because I have no income.

Many retirees setup their retirement to be "funded" with retirement accounts, and have to sell those assets to pay their bills, but that's in their plan.

 

[Mach1E]

Who is "hiding money"? If the government provides a way to owe less (or have a lower liability), no one is "hiding money". And some people save money for new cars, or at least down payments for a new car, so to say that someone buying a $43k - $60k car makes enough money to owe more than $7500 in taxes is not taking many factors into account. My Mach E was $48k, not $60k, and I traded in a vehicle for it. I don't make a 6 figure income.

"Hiding money" involves being paid under the table or keeping money in accounts that the Fed cannot access, which is illegal. Don't ignoranty and falsely accuse people who utilize the law to make the most of government provided incentives.

I make this joke all the time about “tax strategies” vs “tax loopholes.”

They’re the same thing. It just depends on whether the person talking about them likes the strategy or hates the loophole.

 

[Mach1E]

Many people confuse income with assets. I could have $3 million in retirement accounts and not be working due to being laid off. I would get unemployment insurance, and be eligible for things like aid on making medical insurance payments.

As a retiree, I could have $3 million in retirement accounts and still be eligible for the lowest Medicare cost, because I have no income.

Many retirees setup their retirement to be "funded" with retirement accounts, and have to sell those assets to pay their bills, but that's in their plan.

It’s not just Medicare. ACA health plans work the same way.

The credit you get is based on income, so someone with millions or self employed can control their income and get $1k/mo from the government for health insurance because they are “low income.”

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