Claining the full $7,500 federal tax credit

MEGREYHAIR - The Federal Tax Credit applies against tax liability. The $10,000 limit is a cap on SALT deductions and is unrelated to the Tax Credit.
 
We had a substantial return this year thanks to the car and solar system (plus additional work needed to make it function). I suspect we will find out next year that we owe that much thanks to the 2017 "tax deal":mad:
 
KentuckyKen said:
What LAF said. It’s not what you have or will have paid, it’s what your tax liability is.
I’m retired and withdraw from my savings/investments in such a way to always have less tax liability than the $7500 non refundable tax credit.

So in my case, my financial/tax planner has me this year taking put enough in 2018 pre-tax $ to generate the full $7500 tax liability. This is more than I need to live on, so the excess will be put back in to grow and will not be taxed when withdrawn later.

Best advice is see you tax planner. He/she can advise you on best strategies for your situation. Bottom line is that if you will owe Uncle Sam at least $7500 (what you have deducted has no bearing) this year you will get the full credit.
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That's pretty much my story KentuckyKen. I did it at the end of December and got the whole Tax Credit already.
 
bfd said:
We had a substantial return this year thanks to the car and solar system (plus additional work needed to make it function). I suspect we will find out next year that we owe that much thanks to the 2017 "tax deal":mad:
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Solar is an energy credit which can be carried forward if not used. We did that.
 
bobcubsfan said:
Solar is an energy credit which can be carried forward if not used. We did that.
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Same here. It's also nice that the Car Tax Credit, only good for the year it was purchased, is used first which allows the five year solar tax credit to be pushed out to future years.
 
megreyhair said:
@TrueBlueNYC , Are you in the NYC area? I got my touring for 33000 a few weeks ago. But then you have to deal with the 'crap' fee like wheel lock, nitro tires,and some other crap fees.
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I am in the Albany area. I have been negotiating with a few Honda dealers in my area. The best offer I've got so far for the Clarity Touring is $35,000. I wonder if I should expand my search radius to include NYC.
 
marshall said:
If you have a traditional 401k from a former employer, transfer it into a traditional IRA, and then do a Roth conversion to generate taxable income. See a tax advisor for help on doing this correctly.
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I was thinking along the same lines. I will check with a tax advisor to do just this. A bit off topic, but I feel like we're currently in a historically low tax environment and long term, taxes are poised to go up. A ROTH conversion makes a lot of sense, and just may help me capture the full $7,500 tax credit.
 
marshall said:
If you have a traditional 401k from a former employer, transfer it into a traditional IRA, and then do a Roth conversion to generate taxable income. See a tax advisor for help on doing this correctly.
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If your 401K is pre-tax $ like mine, you can withdraw directly to generate taxable income.
 
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