Tax credit

Discussion in 'General' started by Aircooled6, Nov 18, 2017.

To remove this ad click here.

  1. Aircooled6

    Aircooled6 New Member

    I have been trying to get an answer to this for a week. I have a 403b that I want to take enough money out to have the necessary tax liability to use the full $7500 credit. The annuity company will take the tax due out before sending me the remaining money. This isn’t an issue as I will have enough to cover the $7500 towards reducing the price on the Bolt until I receive the tax credit. What I need to know is if the IRS sends me a check for the amount of tax that was given to them by the annuity company in addition to my W-2 withholding for the year up to my $7500 credit? In other words the IRS has the $7500 tax that I owe them by December 31 for the 2017 Tax year; do they send $7500 of that back to me in April/May of 2018? Tax accountants or personal experiences welcomed.
  2. To remove this ad click here.

  3. Aircooled6

    Aircooled6 New Member

    I think I have an answer. I found a consultant that told me that I would indeed receive a check for what ever tax liability that I had that is covered by the $7500 credit. Now, I wait until Monday for him to tell me my tax bracket to determine how much to take in savings.
  4. Pushmi-Pullyu

    Pushmi-Pullyu Well-Known Member

    I would have just called the IRS help line.

  5. Feed The Trees

    Feed The Trees Active Member

    Tax filing is nothing more than an annual reconciliation of the prior years events, and settling up on either side as is necessary. If you overpay tax by $7500 and are due $7500 worth of credits then your net should be $0. Since Uncle Same is holding $7500 of yours and he should have $0, you get $7500 back.

    So yes your plan will work as you describe it but you will just need to wait until it's all settled up to get the money back.
  6. R0ckS0lid

    R0ckS0lid New Member

    Hi, I am an EV newbie. Just got a 2018 Honda Clarity Plug-in Hybrid. Can anyone tell me where to apply for California credit for EV?
  7. To remove this ad click here.

  8. Feed The Trees

    Feed The Trees Active Member

    CA Schedule 540

Share This Page