Tax credit question

Discussion in 'Bolt EV' started by Fotoguzzi, Jan 15, 2023.

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  1. I ordered a 2023 Bolt LT2
    Can I get the RV tax credit ($7500) on my 2023 taxes if my only income is social security?

    sorry, moved to general forum..
     
    Last edited: Jan 15, 2023
    Domenick likes this.
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  3. I believe so, yes. There is a $150,000 cap on income. though, so if you make more than that, you're not eligible.
     
  4. rgmichel

    rgmichel Active Member

    Interesting. I have not followed the rules so far, but if it is a tax credit, you need to owe at least $7500 in taxes, after all deductions etc., to be able to take advantage of the credit. So, if you own no taxes due to low income you may not be able to obtain the credit. I am not sure I like this but its always been that way for the credit.
     
  5. marshall

    marshall Well-Known Member

    It's not likely they owe $7,500 taxes on just social security income. You must owe $7,500 in taxes to use up the full tax credit. However, they can use part of it if they don't owe $7,500 in taxes.

    Domenick, the IRS has said in their FAQ section that the tax credit is not refundable, nor does it carry over to the subsequent years.

    Q7. Is the new clean vehicle credit refundable or able to be carried forward? (added December 29, 2022)
    A7. No. The new clean vehicle credit may only be claimed to the extent of reported tax due of the taxpayer and cannot be refunded or carried forward.
     
    Last edited: Jan 17, 2023
  6. marshall

    marshall Well-Known Member

    That's correct. However they can use part of the tax credit. The tax credit is not refundable, nor does it carry over to subsequent years. The IRS has clearly stated this in their FAQ section.

    https://www.irs.gov/newsroom/topic-a-frequently-asked-questions-about-the-eligibility-rules-for-the-new-clean-vehicle-credit
     
    Last edited: Jan 17, 2023
    Roland likes this.
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  8. From google I found that it uses MAGI (modified annual gross income) and that supposedly includes SS income so I should qualify. I think I’ll ask Turbo tax.
     
  9. marshall

    marshall Well-Known Member

    If you are paying taxes on your social security, then the tax credit can be used. However, if social security is your only income, it's not likely you are paying $7,500 in taxes unless your are married with two large benefits. So you would be able to use only part of the $7,500.

    Most likely, less then $3,372 for a single person.
     
    Last edited: Jan 17, 2023
    Roland likes this.
  10. That’s a little contrary to what I read elsewhere.
    2, what if I pay State taxes on the SS income?
    I have the same question in to an expert at TurboTax, I’ll report back with their answer.
     
  11. insightman

    insightman Well-Known Member Subscriber

    When buying my EVs, I converted regular IRAs to Roth IRAs to generate the required $7,500 tax debt. Now I'll never have to pay taxes on those IRA dollars and won't be required to take the Required Minimum Distribution.
     
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  13. marshall

    marshall Well-Known Member

    Your state taxes don't count. This is a federal tax credit on your federal taxes.

    Some states do have some type of credit or rebate on the state's taxes. But that's a separate issue.

    https://electrek.co/2022/10/05/ev-tax-credit-rebate-states-electric-vehicles/
     
    Last edited: Jan 17, 2023
    Roland likes this.
  14. Wrenwren8

    Wrenwren8 New Member

    Incredibly innovative idea! I might do that.
     
    Roland, Wild Bill and insightman like this.

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