Ts it worth it?

[dmastro]

The OP is from Canada. US tax rules don't apply here.

Isn't NoVA short for Northern Virginia?

I didn't know what NoVA meant, I learned something today. And it's still not yet 10AM.

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[devmach-e]

Isn't NoVA short for Northern Virginia?

I was assuming Nova Scotia. I know that the US doesn't require a 6-month ownership timeframe for the federal tax credit.

 

[generaltso]

I was assuming Nova Scotia. I know that the US doesn't require a 6-month ownership timeframe for the federal tax credit.

I've never seen Nova Scotia abbreviated that way, but I guess anything's possible.

 

[daemonic3]

To the comments regarding the tax credit - assuming OP has > $15K tax liability for the year.

To OP - do whatever you want to do. The answer is more subjective than objective, so what any of us think doesn't matter.

I was thinking same thing about tax liability. It takes planning to owe that much, or a huge capital gain you can take by end of year. Personally I try to shoot for $0 owed/returned each year and don't want to change my W4 so I'm taking capital gains this year that I have to take eventually. Strategizing a way to owe $15k this late in the year will be tough for most people.

 

[generaltso]

I was thinking same thing about tax liability. It takes planning to owe that much

For a lot of people, it really doesn't. Shooting for $0 owed/returned each year has nothing to do with tax liability.

 

[daemonic3]

For a lot of people, it really doesn't. Shooting for $0 owed/returned each year has nothing to do with tax liability.

Not sure what you mean. Are you saying most people don't withhold the appropriate amount to end up near $0, so it is easy to owe $15k? I could see that being the case, if that's what you mean. I love taking home as much as possible each pay period but hate owing a lump sum even more, maybe I'm in the minority.

I know how taxes work, just not sure what you mean by above. Maybe you were just pointing out I used the word "liability" (total annual tax) instead of "remaining tax owed"?

 

[Eosin]

I was thinking same thing about tax liability. It takes planning to owe that much, or a huge capital gain you can take by end of year. Personally I try to shoot for $0 owed/returned each year and don't want to change my W4 so I'm taking capital gains this year that I have to take eventually. Strategizing a way to owe $15k this late in the year will be tough for most people.

I wish. Many people on this forum have a tax liability far greater than $15k every year. It has nothing to due with how much you owe at the end of the year. You can be owed a refund at the end of the year and still take the $7500 rebate to increase the size of your refund.

My tax liability is in the 6 figure range, but I owe nearly nothing at the end of the year because it was already taken out of my paychecks.

 

[TigerEye104]

Not sure what you mean. Are you saying most people don't withhold the appropriate amount to end up near $0, so it is easy to owe $15k? I could see that being the case, if that's what you mean. I love taking home as much as possible each pay period but hate owing a lump sum even more, maybe I'm in the minority.

I know how taxes work, just not sure what you mean by above. Maybe you were just pointing out I used the word "liability" (total annual tax) instead of "remaining tax owed"?

It doesn't matter how much you owe on your tax return when you file it. The issue is whether you have enough taxable income after subtracting your deductions and exemptions from your adjusted gross income to result in a tax liability of $7500 or more to offset the non refundable credit. You don't need to owe any of it.

For example, a single taxpayer with no dependents would need around $47,000 of income (after subtracting the standard deduction and personal exemption) to have a tax liability of around $7500 in order to offset the $7500 tax credit. If you withheld $7500 of federal income tax during the year, you would still qualify for the $7500 of credit and get it as a refund.

 

[devmach-e]

I was thinking same thing about tax liability. It takes planning to owe that much, or a huge capital gain you can take by end of year. Personally I try to shoot for $0 owed/returned each year and don't want to change my W4 so I'm taking capital gains this year that I have to take eventually. Strategizing a way to owe $15k this late in the year will be tough for most people.

All it takes to have $15K in tax liability is a married couple that has an AGI of $132K.

I totally get the desire to get as close to $0 owed or refunded on April 15th, but it isn’t always possible to calculate things that precisely.

 

[generaltso]

Not sure what you mean. Are you saying most people don't withhold the appropriate amount to end up near $0, so it is easy to owe $15k?

I'm saying the amount of withholdings and the amount you owe or get back at the end of the year are irrelevant.

 

[daemonic3]

Ooohhh that is hilarious. This whole time I was thinking if you don't have >$7500 to SETTLE at the end of the year then you lose the credit. If it is just off the total liability then hell yeah of course most people get it directly off!

Best news I've heard all month! Thanks for fixing that for me.

 

[devmach-e]

For example, a single taxpayer with no dependents would need around $47,000 of income (after subtracting the standard deduction and personal exemption) to have a tax liability of around $7500 in order to offset the $7500 tax credit. If you withheld $7500 of federal income tax during the year, you would still qualify for the $7500 of credit and get it as a refund.

My calculation is that a single filer with no dependents and just the standard deduction/exemption has to have a gross income of $66K to have at least $7500 of tax liability.

 

[TigerEye104]

My calculation is that a single filer with no dependents and just the standard deduction/exemption has to have a gross income of $66K to have at least $7500 of tax liability.

You may be right I just pulled this information from another site. I think it was on a different year tax bracket. Still applies just the number will be different.

 

[IgorKl]

I'm in kinda similar boat as you. I ordered MME CR1 AWD in Feb '22 and it finally going to be built somewhere in October (right now 10/3 production week).
I need to choose between Ioniq 5 limited awd and MME CR1 AWD (My wife '21 mme gt untouchable )
My family looking more towards Fords, I'm trying to choose better travel car. The more I think the more I'm close to sell Ioniq even with some monetary loss if it's not large and get CR1.
The only feature that I really need to add would be automatic trunk closing that I likely fix with aftermarket product.

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