Federal rebate questions

  • Thread starter Thread starter DanGest
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DanGest

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A couple questions that I can't seem to easily find the answer to.

Question 1: Are people withholding less money from paychecks once they have bought a qualifying vehicle? I bought my car this month for instance, so in theory I can withhold 7500/9 (April-December - $833) less dollars a month which would be nice to use to pay the car off faster, as my tax liability should be that much less at the end of the year.

Question 2: Is there a limit per person/household for the rebates?, my wife and I both bought a Clarity, I feel safe knowing we can file separately, but of course would rather file together.
 
1. It depends on your situation. Some will do as you plan. Others have tax deferred money like a traditional IRA or a traditional 401k from a former employer and converted it to a Roth IRA or just took the money out to live on if they met the age requirement. Converting to a Roth IRA creates a taxable event.

2. There are two spots on form 8936 for vehicles. I suggest you go read the instructions for form 8936 or consult a tax advisor.

Obviously, you need to pay enough taxes this year to use up all those credits.
 
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