GM Volt Forum banner

1 - 8 of 8 Posts

·
Registered
Joined
·
1 Posts
Discussion Starter #1
Hi,

I am thinking about purchasing a new Volt very soon and I want to make sure that I qualify for the full 7500 federal tax credit before I pull the trigger. Forgive my ignorance but I don't know too much about taxes. I have a tax accountant who does the paperwork and file for me every year. I asked him about my EV purchase but he did not seem to know too much about it. I did some research about the tax credit but I got even more confused. If someone can provide me some information I would really appreciate it.
PS: I received about $6000 in federal tax refund last year if that information helps.

Thank you!
 

·
Administrator
Joined
·
19,982 Posts
Did you pay at least $7500 in federal taxes on your income? If so, you qualify for the full $7500.
 

·
Registered
Joined
·
3,538 Posts
There are other tax credits on a tax form:

The Child Tax Credit can reduce your tax bill by as much as $1,000 per child

Good news is it looks like you can have a many as you want or each :)

-------------
Family Income Test on one but not the other.
 

·
Registered
Joined
·
2,130 Posts

·
Registered
Joined
·
102 Posts
If you buy the Volt you will be eligible to up to $7500 tax credit. If you pay $7500 or more in taxes you will get the full $7500. If however you only owe/pay say $3000 in yaxes, you will receive a $3000 credit.
 

·
Premium Member
Joined
·
14,156 Posts
If your total tax LIABILITY is $7500 or more then you can use the full amount of the credit (if less you can use part of it). Another way to say this is that you can use the credit as long as Line 63 on form 1040 is greater than zero ($0). So look at your 1040. In your example: if you got $6000 back as a refund then, assuming you paid/withheld $13,500 in federal tax (Line 74) -- meaning your tax liability as shown on Line 63 for the year was $7500 -- you could use the full amount of the credit. If you paid $11,000 and got $6000 back then you could use $5000 of the credit ($11,000 on Line 74 - $6000 on Line 63 = $5000, which is your tax liability for the year). So the issue is what number is on Line 63.

If you are using the Short Form, which given you use an accountant I'm assuming isn't the case, then your tax liability shows up on Line 39. Your payments, which are not relevant, show up on Line 46. Same reasoning applies -- you can use the credit to the extent that Line 39 is greater than zero.

Easiest thing would be to tell him/her that it's a credit which is NOT subject to the AMT or alternative minimum tax. Should not be an issue for someone who deals with federal taxation.
 

·
Registered
Joined
·
18 Posts
It is a non-refundable credit. It only kicks in when you need it and for the amount you need. As others before me have said, if you only have a tax liability of say $3,000 then you will receive $3,000. If your liability is $7,500 or greater then you would receive the whole $7,500.
 
1 - 8 of 8 Posts
Top