Any advice on how to fill out the 1040 or other forms to collect the $7,500 on taxes
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I used TurboTax and it asked if I bought a electric or hybrid vehicle and for the make, model, etc. and the vin number. Asked for battery capacity and it figured out the credits right there and transferred it to my state, even though my state (GA) ran out of credits years ago.
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The federal tax credit for alternate fuel/electric vehicles is not a tax rebate. You need to have had sufficient taxable income in the tax year that you are claiming the credit for the purchase of an eligible vehicle. So for 2018 you must have taxable income that resulted in you owing at least $7,500 in federal income tax for the year (or else claim only a portion of the $7,500 credit up to the amount of tax you owe.) You must purchase, not lease, and take delivery of the qualifying vehicle by December 31, 2018 to claim the tax credit for this tax year.
It does not matter if you had federal income taxes withheld from your pay check each pay period or if you made estimated tax payments. If, at the end of year, you paid too much in taxes after taking into account your eligible amount of the tax credit (depending on the vehicle and your total federal tax owed) then you can receive a tax refund for the amount of tax you over paid and/or apply a portion of the excess taxes you over paid to next year's federal income taxes. If you did not have a federal income tax liability of at least $7500 for 2018 then you cannot roll over any unused portion of the tax credit to next year. Starting in Q3 2019, qualified GM vehicles will only be eligible for 50% ($3,750) of the original $7500 tax credit.
The states generally treat the alternate fuel vehicle incentive as a true rebate; you submit the require paperwork, wait for the state to mail you a check (the amount of the rebate varies by state.)
Your Sales Agreement should state that the vehicle was New. The GM paperwork alluded by the finance guy may be the Manufacturer's Statement of Origin (MSO). Also, the federal vehicle mileage form must state the current mileage on the vehicle. Hopefully the dealer is honest, did not already take the federal tax credit for themselves.
more here (see page 2): https://gm-volt.com/forum/showthread.php?325277-Dealer-titled-18-volt-took-tax-cred-sold-as-NEW/page2&highlight=original+sales
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I wouldn't worry about it, to be honest. It qualifies and there's no doubt that you'll still be entitled to $7.5k.
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Mine actually doesn't. It says used. It was used by GM perhaps at a training center and has 4.5K miles on it.. But the dealer said the car had never been titled. I got the registration back from Texas department of motor vehicle and they specify the proof of title furnished by the dealer was the MSO. I have the MSO. I just ordered a certified title history just as backup. So I think I am going to take the credit. The carfax also shows no previous title.
For those that don't have sufficient taxable income, converting a regular IRA to a Roth IRA will generate taxable income. May be a good time for that anyway.
The dealer said my car's original warranty was already started and that the certified used car program was a way to get an extended warranty. It adds 12K to any remaining bumper to bumper warranty. The powertrain is 6 yrs or 100K.
Still ... even if right I would hate to have to argue with the IRS. Maybe I won't have to do so. I don't want to leave 7.5K on the table.
Thanks to all for the useful advice. The above comment is important. I had to cash in some Savings Bonds to pump up my federal tax bill in the year 2018 but converting an IRA to a Roth IRA would have the same effect.
I've never received anything from GM but magazines and "coupons".
All you need is the vin number.
They may be referring to the MSO or the title. If you financed the car, you won't get either of those things, which will instead go to the bank/financing company. You should be able to request a copy from them if you fear chicanery by the dealer on prior use of the tax credit.
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The IRS publishes the list of vehicles that get the credit. This list is at https://www.irs.gov/businesses/irc-30d-new-qualified-plug-in-electric-drive-motor-vehicle-credit. What I did was print this list, which shows the date I printed on my printout and am keeping it with my copy of my return.
FYI... there's still some money left (not much) from TERP. Make sure you do that!
https://www.tceq.texas.gov/airquality/terp/ld.html
You can get $2500 rebate back from the state of Texas.
https://www.tceq.texas.gov/airquality/terp/ld.html
You can get $2500 rebate back from the state of Texas.
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I’ll add an additional query. With the higher standard deduction for tax year 2018, I probably won’t need to itemize unless I need to do so for this tax credit. But as a credit...will I need to itemize? Anyone know this? I expect someone who has done this in a previous year can tell me.
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Credits and deductions are separate. Separate forms.
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The form number for the EV tax credit is 8936. The form number for an EVSE installation tax credit is 8911.
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Thanks! I’d thought the installation credit was good only in certain states. Didn’t realize it was federal.
The $7,500 federal tax credit is for the purchase of an EV, not an "installation" credit.
At one time there was a federal tax credit that could be used if you installed an EVSE at your home or business, it is no longer available. Some states provide a rebate on the purchase of a plug-in hybrid or EV, also some states have a rebate on the installation of a Level 2 EVSE provided it is a permanent installation.
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