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Eligibility for tax credits is unaffected by witholding rates or how large your end-of-year refund or liability is. And anyone who can afford a Tesla is sure to
by twoodfin 8y ago
Eligibility for tax credits is unaffected by witholding rates or how large your end-of-year refund or liability is. And anyone who can afford a Tesla is sure to be paying enough income tax to get the full value of the EV credit.
- usaar333 8y agoExactly. If it's only an edge case where your customers can't benefit (some retirees might have insufficient taxable income, but that's about it), it's fair to include it.
- toomuchtodo 8y agoIf you're retired, you'll do a Traditional->Roth IRA conversion to generate a tax liability for your EV or rooftop solar install.
- gamblor956 8y agoI love being told how taxes work by people on the internet.... I do this for a living. I have plenty of clients who saw little to no benefit from the EV credit because their tax liability was not large enough.
- toomuchtodo 8y agoShouldn’t you have shown them how to incur a liability (retirement account conversions) then so they didn’t lose out on an otherwise non refundable credit?
- prepend 8y agoWhy would tax liability matter depending on withholding or refund size? Credits work against tax liability independent of how much was withheld.