Tax credit question

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Fotoguzzi

Fotoguzzi

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I ordered a 2023 Bolt LT2
Can I get the RV tax credit ($7500) on my 2023 taxes if my only income is social security?

sorry, moved to general forum..
 
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Fotoguzzi said:
I ordered a 2023 Bolt LT2
Can I get the RV tax credit ($7500) on my 2023 taxes if my only income is social security?

sorry, moved to general forum..
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I believe so, yes. There is a $150,000 cap on income. though, so if you make more than that, you're not eligible.
 
Interesting. I have not followed the rules so far, but if it is a tax credit, you need to owe at least $7500 in taxes, after all deductions etc., to be able to take advantage of the credit. So, if you own no taxes due to low income you may not be able to obtain the credit. I am not sure I like this but its always been that way for the credit.
 
Domenick said:
I believe so, yes. There is a $150,000 cap on income. though, so if you make more than that, you're not eligible.
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It's not likely they owe $7,500 taxes on just social security income. You must owe $7,500 in taxes to use up the full tax credit. However, they can use part of it if they don't owe $7,500 in taxes.

Domenick, the IRS has said in their FAQ section that the tax credit is not refundable, nor does it carry over to the subsequent years.

Q7. Is the new clean vehicle credit refundable or able to be carried forward? (added December 29, 2022)
A7. No. The new clean vehicle credit may only be claimed to the extent of reported tax due of the taxpayer and cannot be refunded or carried forward.
 
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rgmichel said:
Interesting. I have not followed the rules so far, but if it is a tax credit, you need to owe at least $7500 in taxes, after all deductions etc., to be able to take advantage of the credit. So, if you own no taxes due to low income you may not be able to obtain the credit. I am not sure I like this but its always been that way for the credit.
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That's correct. However they can use part of the tax credit. The tax credit is not refundable, nor does it carry over to subsequent years. The IRS has clearly stated this in their FAQ section.

https://www.irs.gov/newsroom/topic-...bility-rules-for-the-new-clean-vehicle-credit
 
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From google I found that it uses MAGI (modified annual gross income) and that supposedly includes SS income so I should qualify. I think I’ll ask Turbo tax.
 
If you are paying taxes on your social security, then the tax credit can be used. However, if social security is your only income, it's not likely you are paying $7,500 in taxes unless your are married with two large benefits. So you would be able to use only part of the $7,500.

Most likely, less then $3,372 for a single person.
 
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That’s a little contrary to what I read elsewhere.
2, what if I pay State taxes on the SS income?
I have the same question in to an expert at TurboTax, I’ll report back with their answer.
 
marshall said:
If you are paying taxes on your social security, then the tax credit can be used. However, if social security is your only income, it's not likely you are paying $7,500 in taxes unless your are married with two large benefits. So you would be able to use only part of the $7,500.

Most likely, less then $3,372 for a single person.
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When buying my EVs, I converted regular IRAs to Roth IRAs to generate the required $7,500 tax debt. Now I'll never have to pay taxes on those IRA dollars and won't be required to take the Required Minimum Distribution.
 
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