$7500 EV tax credit/Tax Cuts and Jobs Act

Discussion in 'General' started by Jim Bayerle, Aug 26, 2018.

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  1. Jim Bayerle

    Jim Bayerle New Member

    The "Tax Cuts and Jobs Act," nearly doubles the standard deduction to $24,000 for married couples who file jointly and $12,000 for singles. Does the $24K make the $7500 EV tax credit moot?
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  3. bwilson4web

    bwilson4web Well-Known Member Subscriber

    I think you are asking is:

    Does the $12,000 to $24,000 standard deduction drive your tax liability to less than $7,500?

    It depends on you adjusted gross income and the tax table.

    Bob Wilson
  4. Pushmi-Pullyu

    Pushmi-Pullyu Well-Known Member

    It's important to understand that the up-to-$7500 refund for buying an EV is a Federal income tax credit, not a rebate of part of the amount you paid for the car.

    You can't get more from the credit than you paid in Federal income taxes for the year. If you owe less than $7500 in Federal income taxes for the year, then you'll get less than that in credit. If you own nothing in taxes, then you get nothing back.

    But be aware that there are also State tax credits for EVs in some States, and not just California.

    Full details at Edmunds.com: "Electric Vehicle Tax Credits: What You Need to Know"
    Last edited: Aug 27, 2018
  5. David Green

    David Green Well-Known Member

    It does not help me, the tax cut actually hurt me, because I lost a lot of deductions. A few of my buddies are in the same situation.. My employees benefitted greatly though which is awesome.
  6. Jimmy Truong

    Jimmy Truong Member

    Thanks to Trump with his bs tax cut that benefits the rich pretty much. My case, I can deduct no mortgage interest, property tax and local taxes beyond $10k.
    Last edited: Aug 27, 2018
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