"$7500" tax credit?

  • Thread starter Thread starter Dewayne
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craze1cars said:
Will look into the idea but again I’m talking about $80 here. Might just let the feds have it lol.
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The $80 may not be worth the time to figure it all out, especially if you are setting up a new business. May it be a unicorn!
 
craze1cars said:
Will look into the idea but again I’m talking about $80 here. Might just let the feds have it lol.
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I applaud your efforts to reduce the 779 billion dollar deficit. In just 9,737,500 years you’ll have us paid off. (Sorry I can’t do time value of money) Or just about 100 years if 100 million people did likewise.
Nah, the more we send in, the more they’ll spend.
“When the people find that they can vote themselves money, that will herald the end of the republic.”
Attributed to Benjamin Franklin.
 
So, I'm quite dumb.

I put all the car info in after I entered my w2, but not my wife's w2. When she brought hers home today, I entered that data. That raised our tax liability and, thus, allowed all of the $7500 to apply.

Oops. At least it started an informative thread. Sorry, guys.
 
Lol. Makes sense. You did earlier say you “started” your taxes. It entered my mind to suggest actually finishing your taxes....

Sounds like all is good! Don’t spend your $7500 all in one place!!
 
Dewayne said:
So, I'm quite dumb.

I put all the car info in after I entered my w2, but not my wife's w2. When she brought hers home today, I entered that data. That raised our tax liability and, thus, allowed all of the $7500 to apply.

Oops. At least it started an informative thread. Sorry, guys.
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that is actually a big problem with the refund GOM on the side of TurboTax:D
 
Claritydfw said:
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But for those that can’t take full advantage of the tax credit related to a retail purchase they have the opportunity to lease and still get to take advantage of the 7500 credit. Seems to me they are not excludded from the Tax credit only how they have to use it.
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^^^^^
I took the lease over the finance because it's a small business tax deduction for me plus the $7600 incentive I received at the time of signing the lease was a huge reduction in monthly. Actually leasing the PHEV was $10,600 off MSRP when I leased so that was a HUGE cap cost reduction....

It's hilarious that I still see people getting upset at the dealer for not being able to take the $7500 tax credit after they leased - after they received $7500 plus $100 from Honda who owns the leased car...... I guess people think they can double dip ???
 
Dewayne said:
Just started my taxes, and I was shocked to see that I'm only eligible for around $1900 of the federal tax credit. Anyone else have this happen? Did I do something wrong?
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As soon as the tax tables came out I computed my taxes. I am retired so the income was known. I saw I was not going to get the full amount back and took out 15,000 of an IRA. Our state also gave a tax credit and I received 12,500 (16,175 combined state and fed back from money I put in and the credits) And no I do not feel bad at all. I have paid in my entire adult life and at 71 it is the first time I felt I had not been screwed by taxes.
 
insightman said:
Because you bought your Clarity this year, if you have regular IRAs, you can still do the Roth conversion to create additional tax liability.
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I am 90% sure that it is too late to do a Roth conversion from regular IRAs, these have to be done by December 31 for each tax year.
 
David Towle said:
I am 90% sure that it is too late to do a Roth conversion from regular IRAs, these have to be done by December 31 for each tax year.
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It appears to me that Insightman was replying to a comment by a member (Olimpia) who purchased his Clarity in 2019, so there are many months left before the end of year 2019 for that member to consider doing a Roth conversion that will create some tax liability that the tax credit may soak up.
 
The lease deals have the rebate baked in. Lease then buyout at the end of lease to avoid tax return headaches. Total cost lease plus buyout about $25K USD.
 
If you do not use the whole tax credit in one year can you carry the balance over to the next year like you can with the solar power credits?
 
As @Sandroad says, no. However, as you note, the 30% Federal Tax Credit for solar installations can. I’m having to juggle both to see how to minimize my taxes over the next 2 years.
 
I /think/ geothermal heating/cooling can carry over also. I am looking at adding 2-6kw to my solar and possibly geothermal (problem is my house is only 2 years old)

What I don’t know is if these tax credits really save me anything or if they just let the companies charge me more...
 
LegoZ said:
I /think/ geothermal heating/cooling can carry over also. I am looking at adding 2-6kw to my solar and possibly geothermal (problem is my house is only 2 years old)

What I don’t know is if these tax credits really save me anything or if they just let the companies charge me more...
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It is a bit of both, the companies jack up the price due to the tax rebate but you get some benefit as a consumer as well.
For example, when I priced our Solar a couple of years ago, the parts+labor "retail" price for a standard solar was generally only about $2 - $2.30/watt, yet the installation companies were charging around $3.50/watt due to the federal + state rebates (imo) in addition to benefiting from wholesale costs.
 
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