Whosehouse
New Member
Last I had checked (maybe six months ago), they did not.
EV Tax credit and Tax Software.
- Thread starter ColdCase
- Start date
- Replies 122
- Views 16K
teslarati97
Well-Known Member
Still possible for regular folks but the wealthy buy a new qualifying EV every single year, do a backdoor conversion and claim the $7,500 tax credit.
I didn't see a conversion deadline in the advisory you linked. Does the income bracket affect whether one can convert traditional IRAs to Roth IRA funds between December 31st and April 15th?
teslarati97
Well-Known Member
That is for your tax professional to advise you on. It is unfortunately complex and different for each taxpayer. As for the deadline, you could find it in 26 U.S. Code § 408A as a starting point.
I pay my tax accountant to read that stuff. So I hope he pays any penalty I accrue because to qualify for the $7,500 federal EV tax credit for the SE I purchased in August, 2020, he directed me to convert traditional IRA funds to Roth IRAs in April, 2021.
Urbanengineer
Active Member
Sounds like there is hope. This is why they allow us to file previous year differences until April after all. I’ll schedule something for Monday. Enjoy the super ball!
Tommm
Well-Known Member
Sounds like your tax bill before the conversion was less than 7500. So by converting the funds you raised your income enough so that your federal tax bill was 7500. Since the 7500 is use or lose, by recharacterizing a conventional IRA contribution to a Roth you used whatever was left of the federal credit, and now any income/appreciation on the IRA is tax free.
Roth IRA - Conversion From an IRA Distribution Must be by End of Tax Year (taxact.com)
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Yes, I needed help to owe $7,500. Now I don't have to take the Required Minimum Distribution on those Roth IRA funds or ever pay taxes on them.
It's interesting that the title says "Must be by End of Tax Year," then the very first line in the article says, "The original conversion from a Traditional IRA to a Roth IRA must be completed within 60 days after the end of the tax year."
Urbanengineer
Active Member
we use “tax act” for tax filing because of the free federal Filing at our incomes. Thank you both for elaborating more on this, it sounds like we can still do some conversion magic.
I am not a fan of turbo tax because they delay tax credit forms oddly, can’t file an 8911 (alt fuel) or 8936 (EV car) form until after the FREE federal FILING DEADLINE. Shady turbo tax.
Cindy B
Member
Good to know. I was about to try TurboTax through the IRS link. We likewise can't get the online form directly through the IRS to work correctly. Their e-file service won't accept the Schedule 3 or the 8936 EV form numbers. Very frustrating. It's especially frustrating since our tax return couldn't be any simpler -- two W-2s and taking the standard deduction. I have to wonder if our return is being automatically kicked back because of the unusually large refund caused by the EV credit.
Urbanengineer
Active Member
Tax act made the AMT calculation, form 8936 filled in the correct spots, and S3 1040 was filled correctly. Could download for your own keeping “as preview” (was actually return).
Highly recommended.
Quiet Mini
Well-Known Member
Colorado is $3500? I thought it was $2500 now.
GetOffYourGas
Well-Known Member
Just catching up on this thread. Sounds like there is some good news. I’m still working through other tax situations involving dependents, so I haven’t reached out to a tax professional yet.
Sent from my iPhone using Inside EVs
Sent from my iPhone using Inside EVs
The free advice you find here is worth every penny you pay for it. It's sad that there isn't a tax professional with a MINI Cooper SE who is a member of this forum. Because the SE is such a good deal, there are probably many tax professionals who own this car, just none who will reveal themselves on this forum.
Tommm
Well-Known Member
2500. Fat fingers. Sorry
State licensing laws, and insurance policies limit how advice can be given without potential repercussions.
Urbanengineer
Active Member
Confirmed it with a couple CPA’s that the IRA to Roth conversion done by your brokerage / retirement account advisor can be marked as part of your 2021 tax liability until Feb 28th. Don’t wait too long! Looks like we have quite a bit to convert (or elect to take less other credits / deductions).
We calculated our annual budget assuming we were getting full amount when we bought it last year. Our mistake ! Working for it now in Feb.
We calculated our annual budget assuming we were getting full amount when we bought it last year. Our mistake ! Working for it now in Feb.
Urbanengineer
Active Member
Looks like someone commented from my email notification, but I don’t see it anymore. We will confirm with tax attorney by Friday!
Teddydogno1
Active Member
Got an email that says TurboTax finally has Form 8911 ready for the Alternative Fuel Vehicle Refueling credit. I can finally file my darn return. Except my wife's work messed up her Flexible Spending Account reporting and I need to see if they can correct that.
Rob
Rob
ColdCase
Active Member
Yeah, got an email earlier today, upgraded, e-filed and the IRS accepted.... The IRS published the forms awhile ago but TurboTax didn't have them incorporated in their software, software that you need for e-filing. You could postal mail in the return, but TurboTax had finish up integrating before you could e-file.
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