$7,500 Reduction in Tax Liability Question

[Luft]

Does a person forfeit the standard deduction by claiming the reduction in Federal tax liability given for the LEAF purchase :?:

 

[EdmondLeaf]

no

 

[Tardis]

There are tax credits and deductions

Deductions would require you to itemize and thus "override" the standard deduction if it exceeds the standard deduction.

Credits are applied to you final tax tally, reducing your tax liability or increasing refund dollar for dollar

My understanding is that the 7500 is a tax credit which allows dealers to apply dollar for dollar as payment on car.

 

[dgpcolorado]

There are tax credits and deductions

Deductions would require you to itemize and thus "override" the standard deduction if it exceeds the standard deduction.

Credits are applied to you final tax tally, reducing your tax liability or increasing refund dollar for dollar

Just to clarify: the federal tax credit is not refundable and doesn't carry over to future years (like the solar tax credit). That means that one must have a tax owed of at least $7500 to be able to claim it all (line 46 on the 2010 Form 1040). [However, this has nothing to do with getting a tax "refund" because too much tax was withheld during the year.]

My understanding is that the 7500 is a tax credit which allows dealers to apply dollar for dollar as payment on car.

This applies only if the car is being leased.

 

[ebill3]

Rather than start a new tax thread, thought I would resurrect this one. Disclaimer - I have zero tax expertise.

It appears that many LEAF purchasers have two Federal tax credits available to them. If they have a large enough tax liability, then all should benefit from the $7,500 tax credit (IRS Form 8936). If a person did not receive a free EVSE installation and paid for such an installation, then a 50% credit is available (IRS Form 8911).

For many years, I have used tax preparation software as my personnel situation easily allows such. My problem is that I can not find out which packages will support the above mentioned credits. A customer support person at H & R Block revealed that none of their At Home products do so. I've run into a blank wall at Turbo Tax trying to find out ANYTHING about such support.

Anyone able to offer suggestions? Other than going to a paid tax preparer? I guess if all else fails, I'll get all the forms and my stubby pencil and do it the old way.

Bill

 

[ttweed]

For many years, I have used tax preparation software as my personnel situation easily allows such. My problem is that I can not find out which packages will support the above mentioned credits.

I use TaxACT online and it has both of these areas covered in their software for 2011. I can't believe the other packages will not have it.

TT

 

[Volusiano]

That's a bummer that Turbo Tax doesn't support it. Did you call their customer support and ask for sure? Maybe their business version supports it or something. I've been using Turbo Tax myself for years.

 

[ebill3]

That's a bummer that Turbo Tax doesn't support it. Did you call their customer support and ask for sure? Maybe their business version supports it or something. I've been using Turbo Tax myself for years.

I don't know that Turbo Tax does not support the credits. Actually, I became frustrated and gave up trying to contact anyone at Turbo Tax. I tried finding a telephone number, but got caught in a loop.

Bill

 

[ebill3]

I use TaxACT online and it has both of these areas covered in their software for 2011. I can't believe the other packages will not have it.

Thanks for the tip. I'll certainly check them out. As to H & R Block, perhaps I just got bum information, as it does seem strange that they would not include such credits.

Bill

 

[mwalsh]

As to H & R Block, perhaps I just got bum information, as it does seem strange that they would not include such credits.

H&R Block also told me no for this year. I'm kind of bummed...I've been using their online service for years, making each year a relatively easy proposition. Now I have to go through entering all my crap again in somebody else's product. :x

 

[asinclair]

I have been doing some research on tax programs for this year, and it looks like Turbo Tax Deluxe and Tax Act Deluxe both include support for the charging station credit (Form 8911) and the EV Credit (Form 8936). H&R Block does not.
I hope that helps...

 

[thankyouOB]

Rather than start a new tax thread, thought I would resurrect this one. Disclaimer - I have zero tax expertise.

It appears that many LEAF purchasers have two Federal tax credits available to them. If they have a large enough tax liability, then all should benefit from the $7,500 tax credit (IRS Form 8936). If a person did not receive a free EVSE installation and paid for such an installation, then a 50% credit is available (IRS Form 8911)....


Bill

This is good, but the credit is 30% NOT 50%.

 

[ebill3]

Rather than start a new tax thread, thought I would resurrect this one. Disclaimer - I have zero tax expertise.

It appears that many LEAF purchasers have two Federal tax credits available to them. If they have a large enough tax liability, then all should benefit from the $7,500 tax credit (IRS Form 8936). If a person did not receive a free EVSE installation and paid for such an installation, then a 50% credit is available (IRS Form 8911)....


Bill

This is good, but the credit is 30% NOT 50%.

Well, I have not seen the year 2011 IRS form 8911, but the 2010 form shows a multiplier of .30 for Hydrogen Refueling Property, and .50 for Other Refueling Property.

Like I say, I have zero tax expertise, so what am I missing?

Bill

 

[ebill3]

As to H & R Block, perhaps I just got bum information, as it does seem strange that they would not include such credits.

H&R Block also told me no for this year. I'm kind of bummed...I've been using their online service for years, making each year a relatively easy proposition. Now I have to go through entering all my crap again in somebody else's product. :x

Well, not really. I am quite sure Turbo Tax will import At Home data, and TaxAct says they will import At Home data in pdf format. As I recall, you can save At Home as a pdf file.

Bill

 

[ebill3]

I have been doing some research on tax programs for this year, and it looks like Turbo Tax Deluxe and Tax Act Deluxe both include support for the charging station credit (Form 8911) and the EV Credit (Form 8936). H&R Block does not.
I hope that helps...

Thank you for that information - I gave up trying to find out from Turbo Tax.

Bill

 

[cwerdna]

That's a bummer that Turbo Tax doesn't support it. Did you call their customer support and ask for sure? Maybe their business version supports it or something. I've been using Turbo Tax myself for years.

I don't know that Turbo Tax does not support the credits. Actually, I became frustrated and gave up trying to contact anyone at Turbo Tax. I tried finding a telephone number, but got caught in a loop.

Bill

I would think the Turbo Tax software should support it (esp. given that Intuit, the makers of the software are based in Mountain View, CA, not far from the Googleplex). I've been using Turbo Tax for ages and recall being asked questions about qualifying alternative energy vehicles. I used it for tax year 06 for the tax credit on my Prius.

Googling for site:intuit.com electric vehicle credit turns up a bunch of hits.

 

[smkettner]

Rather than start a new tax thread, thought I would resurrect this one. Disclaimer - I have zero tax expertise.

It appears that many LEAF purchasers have two Federal tax credits available to them. If they have a large enough tax liability, then all should benefit from the $7,500 tax credit (IRS Form 8936). If a person did not receive a free EVSE installation and paid for such an installation, then a 50% credit is available (IRS Form 8911)....


Bill

This is good, but the credit is 30% NOT 50%.

Well, I have not seen the year 2011 IRS form 8911, but the 2010 form shows a multiplier of .30 for Hydrogen Refueling Property, and .50 for Other Refueling Property.

Like I say, I have zero tax expertise, so what am I missing?

Bill

You are missing the 2011 form.

Also keep in mind the refueling credit is subject to AMT so if the vehicle and refueling equipment are purchased in the same year there is a good chance the refueling credit will not apply. That is my understanding YMMV.

 

[thankyouOB]

Rather than start a new tax thread, thought I would resurrect this one. Disclaimer - I have zero tax expertise.

It appears that many LEAF purchasers have two Federal tax credits available to them. If they have a large enough tax liability, then all should benefit from the $7,500 tax credit (IRS Form 8936). If a person did not receive a free EVSE installation and paid for such an installation, then a 50% credit is available (IRS Form 8911)....


Bill

This is good, but the credit is 30% NOT 50%.

Well, I have not seen the year 2011 IRS form 8911, but the 2010 form shows a multiplier of .30 for Hydrogen Refueling Property, and .50 for Other Refueling Property.

Like I say, I have zero tax expertise, so what am I missing?

Bill

I am talking about the tax credit for a residential installation. It is 30%.
You may be discussing a business/investment Section 179 deduction. That does not apply to most residential installations, which is what I thought was be discussed along with the $7500 Tax credit for purchase of a Leaf.

Believe me, I would be glad if it were 50%; but alas, not so.

 

[ebill3]

You are missing the 2011 form.

Also keep in mind the refueling credit is subject to AMT so if the vehicle and refueling equipment are purchased in the same year there is a good chance the refueling credit will not apply. That is my understanding YMMV.

Yes - even though the 2011 form is not available, it appears that it is 30% for all alternate fueling equipment installed in 2011. I stand corrected, darn it.

Bill

 

[ENIAC]

I have been doing some research on tax programs for this year, and it looks like Turbo Tax Deluxe and Tax Act Deluxe both include support for the charging station credit (Form 8911) and the EV Credit (Form 8936). H&R Block does not.
I hope that helps...

Here are all the forms Turbo Tax Deluxe supports. Looks like they have solar covered too.