Honda PHEV Clarity Federal Tax Credit 2019

Discussion in 'Clarity' started by smith ho, Jan 29, 2019.

  1. smith ho

    smith ho New Member

    Hi all,
    I am a super new user and I just came across for Clarity PHEV.
    Is Honda PHEV Clarity still eligible for $7,500 Federal Tax Credit for 2019 tax year?
    Thanks
     
  2. Sandroad

    Sandroad Well-Known Member

    Yes, it is. Here is the web site with the information.

    https://www.fueleconomy.gov/feg/taxevb.shtml
     
    smith ho and ClarityDoc like this.
  3. ab13

    ab13 Active Member

  4. DucRider

    DucRider Active Member

    Some folks are on a forced extended vacation, so sites with the .gov designation are very unlikely to be current.
    But yes, the 2019 Clarity is eligible for the full $7,500 Federal Tax Credit. Honda isn't even close to the 200K in sales that would trigger a phase out.
    If Congress decides to change IRC 30D, all bets are off.
     
  5. Tim66

    Tim66 Active Member Subscriber

    I use TaxAct and up until a week ago I couldn't fill out the tax credit IRS Form 8936 because the program said the form had not been released by the IRS yet. But now, after an update, the program allows me to fill out the form and my $7500 credit was computed and added to my 1040. Very nice return coming this year.

    Tim
     
    228ra likes this.
  6. MNSteve

    MNSteve Well-Known Member Subscriber

    I just e-filed my 2018 return using the H&R Block software on my laptop. It knew about the tax credit.
     
  7. craze1cars

    craze1cars Well-Known Member

    I likewise use TaxAct, and starting hammering out numbers a couple days ago -- found the car questions and answered them, entered VIN and purchase date, and it calculated the full $7,500 credit for me. I have not yet actually completed it and filed however, as I'm still waiting for a multitude of forms from brokerages, etc. But it seems to be acknowledging the car credit is not a problem from the feds...
     
  8. insightman

    insightman Well-Known Member

    Remember, you must have a tax liability of at least $7,500 to claim this tax credit.

    If you don't have a tax liability of $7,500, you can convert regular IRAs to Roth IRAs to increase your tax liability to $7,500. In addition to feeling good that you took full advantage of the federal EV tax credit, you will never have to pay taxes on those Roth IRA funds and you won't be forced to start withdrawing them at age 70-1/2. My wife and I did that Roth conversion to get the tax credit.
     
    4sallypat and smith ho like this.
  9. MNSteve

    MNSteve Well-Known Member Subscriber

    This is good advice, but not if you want to claim the tax credit for the 2018 tax year. Any withdrawal you do now will generate income for 2019. I don't know if there's a rule that you have to claim the tax credit for the year in which you purchased the vehicle.
     
  10. lordsutch

    lordsutch Member

    You have to claim the credit in same the tax year you put the vehicle in service.

    While you can contribute to an IRA for 2018 until April 15, 2019, to do a Roth conversion for 2018 you had to do it by December 31, 2018. Maybe a tax accountant could figure out some other retroactive way to generate extra income tax liability in 2018 but I can't think of anything obvious. (And it does have to be income tax - for example, self-employment tax doesn't help with the tax credit.)
     
  11. 4sallypat

    4sallypat Active Member

    Instead of financing or buying it, if you decide to LEASE the 2018 Clarity in ZEV states, you are entitled to receive between $7400-$10,500 off the MSRP thus reducing your cap cost and monthly immediately at the dealership till 2/28/19.

    Of course if you lease, you are not the owner so you can not claim the Federal credit in 2020 when you file your taxes for 2019....
     
  12. Tim66

    Tim66 Active Member Subscriber

    The dealers here in Ohio wouldn't reduce the lease cost for the Volt or the Clarity based on the tax credit.

    Tim

    Edit: just saw the ZEV state comment. I'm guessing Ohio is not a ZEV state.
     

Share This Page