What is the date the government uses to determine when the refund is eligible? Is the the date you purchased the car or the date you registered the car? We bought the car on the 23rd but haven't received the paperwork to take it to the dmv to get the plates. I am wondering if that is going to screw us or not.
From Form 8936, you'll need: 1) Year, make and model of vehicle 2) VIN 3) Date vehicle was placed in service In my interpretation, #3 is the date you drove it off the dealer's lot.
https://www.nerdwallet.com/blog/loans/plug-vehicle-tax-credits-rebates-made-easy/ Make sure to read the comments... there are some good discussions and examples there
Can anyone confirm that we can reduce the tax withholding this year based on the assumption we will be getting the $7500 after we file the tax next year? In other words, we do not have to wait till next year to recover the $7500. Sent from my Pixel XL using Tapatalk
I need to register the car in my dad's name but the car title and sales receipt will be in my name. I need to do this for parking reasons. Will this screw up the federal tax credit? I checked out form 8936 and it doesn't say anything about registration so I think it would be okay.
I would think you can reduce your withholding based on the assumption you will be gettnig the $7500 credit. I did just that, increased my exemption. I expect to pay very close $0 for fed tax in 2018.
My tax and fee for service financial planner whom I trust has me doing essentially what you are describing. I am taking out enough pretax money from my retirement acct to owe the $7,500 tax liability but having no fed tax withheld. This way with the credit at time of filing, I will have to pay next to nothing and not be penalized over that certain percent of tax liability withheld rule. Then if I don’t spend it all, I will put the left over funds back in post tax investment funds.
#3 will be the date on the vehicle registration. So likely the day you picked it up or the day prior. Sent from my iPhone using Inside EVs
I would be careful and talk to the licensing bureau in your state. My state would not allow the title and the registration to have different names.
Just to clarify, it is not a refund. It is a tax credit. You have to have a tax liability in excess of the $7500 in order to get the credit. If your tax liability is less than $7500, you would end up paying no federal income taxes for year 2018, but you cannot carry the "unused" portion of the credit forward into next year.
To generate offsetting taxes we converted regular IRAs to Roth IRAs. The $7,500 EV tax credit made the conversion free and we're now exempt from paying taxes when we withdraw those IRA funds. Also, we're exempt from being forced to start liquidating those IRAs when we turn 70-1/2 years old. And we got a really great car as part of the deal!
On a 1040 form, it should be line 63. "This is your total tax" which needs to be $7500 or more for the full credit.
