New tax law and federal tax credit

Discussion in 'General' started by JyChevyVolt, Feb 1, 2018.

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  1. JyChevyVolt

    JyChevyVolt Active Member

    Last year, family four needed to gross $86,000 for the full tax credit. How much is it this year?
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  3. Feed The Trees

    Feed The Trees Active Member

    Well by saying family of four you're already talking breaks, so you can't go by gross. All that matters is net of whatever tax situation you have. I'll go lookup married tax brackets brb.

    0 - 19,050 @ 10% so $1,905
    19,051 -77,400 @ 12% is $7,001.88

    So right there you're already past $7,500. Backing into what's left you need $46,625 of the 12% bracket plus the $19,050 of the 10% so $65,675 taxable income so far.

    The family's standard deduction is $24,000 so up to $89,657. There is no personal exemptions. If that's all you have, just standard deductions, then that's your figure.

    If you have additional SALT or other items to deduct it will be more, accordingly.
    Last edited: Feb 1, 2018
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  4. JyChevyVolt

    JyChevyVolt Active Member

    What about child tax credit?
  5. Feed The Trees

    Feed The Trees Active Member

    yup add another 4k so $93,657
  6. JyChevyVolt

    JyChevyVolt Active Member

    I think the tax credit is different from deduction.

    That's $18,200 @ 22% = $4000

    Around $108,000. People who max out their 401k and IRA will have a hard time generating enough tax. Maybe some IRA to Roth conversion.
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  8. Feed The Trees

    Feed The Trees Active Member

    Right, good call. 108k. Yeah that's probably why they didn't mind keeping it. It's for the rich and not everyone who does claim it will get all of it anyhow.

    Can you carry it forward at all?

    We know how many EV credits get claimed, but does anyone know the average dollar value of those claims? Or even better a histogram with $750 bins?

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