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Not quite. That $7500 is a full on tax credit. Not a deduction. So as long as you pay more than $7500 in taxes, you get it all back. And if for some reason you
by selectodude 7y ago
Not quite. That $7500 is a full on tax credit. Not a deduction. So as long as you pay more than $7500 in taxes, you get it all back. And if for some reason you pay less, you’ll get a refund.
- joshcain 7y agoNo, he’s right. The EV credit is not refundable* so your tax liability has to be at least $7500 to get the full benefit of it. * https://ttlc.intuit.com/community/tax-credits-deductions/discussion/if-i-purchase-an-electric-vehicle-with-the-7500-tax-credit-how-do-i-ensure-that-i-will-owe-enough-at/00/772844 https://ttlc.intuit.com/community/tax-credits-deductions/dis...
- selectodude 7y agoI didn't realize it wasn't refundable. However you don't need to make much to pay $7500 in taxes. I don't make enough to buy an electric car and I pay three times that.
- Someone1234 7y ago> However you don't need to make much to pay $7500 in taxes. You do if you're a family, with a 24K standard deduction, a family HSA ($7K), and any number of 401Ks for retirement. A group of people who would benefit significantly from an electric vehicle. As I said, I don't qualify for the full amount and I earn well above the state's average.