Arrived...2023 Model Y in Black
#1111
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Some good news. I filed my taxes today, and I just barely qualified for the $7500 tax credit. A large portion of my compensation is RSU's (Restricted Stock Units), which nobody got last year due to some cut backs. On paper the IRS considers them as income, they are not really worth anything until I actually sell them on the market, but the Government finds a way to get it's piece
. The tax form will be available for online filing on Feb 14th, and I'll get my $7500
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#1112
Lexus Champion
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Some good news. I filed my taxes today, and I just barely qualified for the $7500 tax credit. A large portion of my compensation is RSU's (Restricted Stock Units), which nobody got last year due to some cut backs. On paper the IRS considers them as income, they are not really worth anything until I actually sell them on the market, but the Government finds a way to get it's piece
. The tax form will be available for online filing on Feb 14th, and I'll get my $7500 ![Smilie](https://www.clublexus.com/forums/images/smilies/smile.gif)
![Sad](https://www.clublexus.com/forums/images/smilies/sad.gif)
![Smilie](https://www.clublexus.com/forums/images/smilies/smile.gif)
#1113
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Just to be clear on the above post, this is not free money taken out of other people's taxes. In other words, people who have no intention of buying an EV didn't fund my Tesla purchase. It's a non refundable tax credit that lowered my tax burden by $7500. I'm not getting it wired to my bank as cash, I'm not $7500 richer. And the government didn't hand Tesla $7500. I will be paying the government less money. I hope that clears things up
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AMIRZA786 (02-13-24)
#1114
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Just to be clear on the above post, this is not free money taken out of other people's taxes. In other words, people who have no intention of buying an EV didn't fund my Tesla purchase. It's a non refundable tax credit that lowered my tax burden by $7500. I'm not getting it wired to my bank as cash, I'm not $7500 richer. And the government didn't hand Tesla $7500. I will be paying the government less money. I hope that clears things up
![Sad](https://www.clublexus.com/forums/images/smilies/sad.gif)
![Uhh...](https://www.clublexus.com/forums/images/smilies/1387914497.gif)
i guess the point is to end up with no tax liability to the irs after all taxes paid and credits.
https://turbotax.intuit.com/tax-tips...dits/L9gpESSU2
Last edited by bitkahuna; 02-13-24 at 05:46 AM.
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jrmckinley (02-13-24)
#1115
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if you're paying $7500 less taxes, that's $7500 that doesn't go into govt revenue. no it doesn't come directly from someone else, and the govt may not need that $7500 specifically, and of course the govt runs on an obscene amount of borrowing anyway, but the system of incentives and penalties/taxes is supposed to reflect 'policies' to get the public to do what it wants. all things considered, your $7500 credit probably just contributes to the federal debt burden. ![Sad](https://www.clublexus.com/forums/images/smilies/sad.gif)
no, it's $7500 off your taxes owed (tax credit, not off taxed income). but what i don't get is if it's a so-called "non refundable" credit, i believe that if you owe say $2000 and have the $7500 credit, you won't get a $5500 refund![Uhh...](https://www.clublexus.com/forums/images/smilies/1387914497.gif)
i guess the point is to end up with no tax liability to the irs after all taxes paid and credits.
https://turbotax.intuit.com/tax-tips...dits/L9gpESSU2
![Sad](https://www.clublexus.com/forums/images/smilies/sad.gif)
no, it's $7500 off your taxes owed (tax credit, not off taxed income). but what i don't get is if it's a so-called "non refundable" credit, i believe that if you owe say $2000 and have the $7500 credit, you won't get a $5500 refund
![Uhh...](https://www.clublexus.com/forums/images/smilies/1387914497.gif)
i guess the point is to end up with no tax liability to the irs after all taxes paid and credits.
https://turbotax.intuit.com/tax-tips...dits/L9gpESSU2
The other incentive that I was hoping for, was the $1k back for having a level 2 charger installed. Unfortunately, they changed the rules in '23, so you need to either be living in a poverty zone, or a rural area, which I do not. My city gave me $500 back, but it was supposed to be $750. They ran out of money and pushed me into the '24 incentive. I also am required to pay $5/mo for 5 years into some pool that gets distributed to less fortunate families. Basically, I'm only getting $200 refunded. Almost wasn't worth the effort filling out the forms and jumping through the hoops.
#1116
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Because I bought my truck in 2022 I got the credit on a truck which would have failed the MSRP test and despite me being a taxpayer who exceeded the impending income thresholds. I looked at this this way. I've paid huge amounts of tax over the years, so no one is going to make me feel bad about sneaking a one-time 7.5K reduction in my own tax bill.
Remember that roughly half the population pay no federal tax (the half that don't do pay other taxes). And federal tax collection in dollar terms is mainly funded by higher earners.
Remember that roughly half the population pay no federal tax (the half that don't do pay other taxes). And federal tax collection in dollar terms is mainly funded by higher earners.
#1117
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Correct, if you're not over the income limits, it reduces your federal taxes by up to $7,500. If your total federal tax burden is less than that, you only get back up to what you paid in. Like Amirza, I get the full amount. This year it's an up-front credit of $7,500 with only the income limits to be concerned with. Meaning, you can get it even if you didn't pay enough in. They will only go after those that exceed the income limit.
The other incentive that I was hoping for, was the $1k back for having a level 2 charger installed. Unfortunately, they changed the rules in '23, so you need to either be living in a poverty zone, or a rural area, which I do not. My city gave me $500 back, but it was supposed to be $750. They ran out of money and pushed me into the '24 incentive. I also am required to pay $5/mo for 5 years into some pool that gets distributed to less fortunate families. Basically, I'm only getting $200 refunded. Almost wasn't worth the effort filling out the forms and jumping through the hoops.
The other incentive that I was hoping for, was the $1k back for having a level 2 charger installed. Unfortunately, they changed the rules in '23, so you need to either be living in a poverty zone, or a rural area, which I do not. My city gave me $500 back, but it was supposed to be $750. They ran out of money and pushed me into the '24 incentive. I also am required to pay $5/mo for 5 years into some pool that gets distributed to less fortunate families. Basically, I'm only getting $200 refunded. Almost wasn't worth the effort filling out the forms and jumping through the hoops.
#1118
Lexus Champion
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if you're paying $7500 less taxes, that's $7500 that doesn't go into govt revenue. no it doesn't come directly from someone else, and the govt may not need that $7500 specifically, and of course the govt runs on an obscene amount of borrowing anyway, but the system of incentives and penalties/taxes is supposed to reflect 'policies' to get the public to do what it wants. all things considered, your $7500 credit probably just contributes to the federal debt burden. ![Sad](https://www.clublexus.com/forums/images/smilies/sad.gif)
no, it's $7500 off your taxes owed (tax credit, not off taxed income). but what i don't get is if it's a so-called "non refundable" credit, i believe that if you owe say $2000 and have the $7500 credit, you won't get a $5500 refund![Uhh...](https://www.clublexus.com/forums/images/smilies/1387914497.gif)
i guess the point is to end up with no tax liability to the irs after all taxes paid and credits.
https://turbotax.intuit.com/tax-tips...dits/L9gpESSU2
![Sad](https://www.clublexus.com/forums/images/smilies/sad.gif)
no, it's $7500 off your taxes owed (tax credit, not off taxed income). but what i don't get is if it's a so-called "non refundable" credit, i believe that if you owe say $2000 and have the $7500 credit, you won't get a $5500 refund
![Uhh...](https://www.clublexus.com/forums/images/smilies/1387914497.gif)
i guess the point is to end up with no tax liability to the irs after all taxes paid and credits.
https://turbotax.intuit.com/tax-tips...dits/L9gpESSU2
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swajames (02-13-24)
#1119
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While we are talking about the $7500 tax credit, I decided to use Intuit TurboTax this year instead of using a professional, and a tax professional is way better, which is why they are not cheap. When it comes to tax deductions, they only offer up the most common deductions, and you have to go digging for other deductions. I had to go searching for the EV tax credit forms, which are Form 8936 and 8936-A. I paid for the Premium Live assisted and had to speak with someone, but was finally able to file for the deduction. Had I not known about the EV credit, I could have easily missed it
#1120
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These things are put in place for a reason - and they're meant to be used. I'm glad you got to take advantage of it!
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AMIRZA786 (02-13-24)
#1121
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#1122
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if you're paying $7500 less taxes, that's $7500 that doesn't go into govt revenue. no it doesn't come directly from someone else, and the govt may not need that $7500 specifically, and of course the govt runs on an obscene amount of borrowing anyway, but the system of incentives and penalties/taxes is supposed to reflect 'policies' to get the public to do what it wants. all things considered, your $7500 credit probably just contributes to the federal debt burden. ![Sad](https://www.clublexus.com/forums/images/smilies/sad.gif)
![Sad](https://www.clublexus.com/forums/images/smilies/sad.gif)
#1123
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our tax system is not only obscenely complex and inefficient, it also isn't even remotely fair. these days low earners not only pay no taxes, they get REFUNDS as well from tax credits. but that's a small matter, although big to those who need the money so i'm not blaming them. but the complexity is awful, so as you discovered actual accountants usually earn their pay over turbotax.
i haven't done my own tax return in forever. i don't have the interest, the skills, or the time. happy to pay someone qualified to do it.
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AMIRZA786 (02-13-24)
#1124
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just to be very clear, i was in no way implying you should feel bad. everyone should take every tax break they can.
our tax system is not only obscenely complex and inefficient, it also isn't even remotely fair. these days low earners not only pay no taxes, they get REFUNDS as well from tax credits. but that's a small matter, although big to those who need the money so i'm not blaming them. but the complexity is awful, so as you discovered actual accountants usually earn their pay over turbotax.
i haven't done my own tax return in forever. i don't have the interest, the skills, or the time. happy to pay someone qualified to do it.
our tax system is not only obscenely complex and inefficient, it also isn't even remotely fair. these days low earners not only pay no taxes, they get REFUNDS as well from tax credits. but that's a small matter, although big to those who need the money so i'm not blaming them. but the complexity is awful, so as you discovered actual accountants usually earn their pay over turbotax.
i haven't done my own tax return in forever. i don't have the interest, the skills, or the time. happy to pay someone qualified to do it.
![Big Grin](https://www.clublexus.com/forums/images/smilies/biggrin.gif)
#1125
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While we are talking about the $7500 tax credit, I decided to use Intuit TurboTax this year instead of using a professional, and a tax professional is way better, which is why they are not cheap. When it comes to tax deductions, they only offer up the most common deductions, and you have to go digging for other deductions. I had to go searching for the EV tax credit forms, which are Form 8936 and 8936-A. I paid for the Premium Live assisted and had to speak with someone, but was finally able to file for the deduction. Had I not known about the EV credit, I could have easily missed it
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AMIRZA786 (02-13-24)