OHaiii
Posts: 1
Joined: Thu Nov 21, 2019 8:31 am
Delivery Date: 21 Nov 2019

Leaf Tax Credit Question (USA)

Thu Nov 21, 2019 8:39 am

Hello,

Thinking of purchasing the Leaf here in California and thought I'd ask here since you guys have actually gone thru the process as the websites have conflicting information.

If they say for example there is a $5,000 federal tax credit, does that mean you only get that credit if you owe at the end of the year? I'm a regular W2 employee with no deductible expenses or a mortgage, so i usually end up receiving about $10k back from the federal return and $4k from CA state return each year. Does this mean the tax credit from buying the leaf will be $0 for me? It says somewhere that you only get the tax credit if you have a bill due to the IRS. Can you elaborate on how this all works? Thanks for any advice!

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jlv
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Re: Leaf Tax Credit Question (USA)

Thu Nov 21, 2019 9:28 am

For the federal, it is a credit ($7500 currently) against the tax you owe. That you get a refund doesn't matter. Look at line 15 of your 2018 form 1040.

If you are currently getting a $10K refund each year, it means you are paying $10K more than the amount of tax you actually owe. If you owe at least $7500 in tax, then you would get a $17.5K refund.
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DaveinOlyWA
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Leaf Number: 319862
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Re: Leaf Tax Credit Question (USA)

Thu Nov 21, 2019 9:48 am

OHaiii wrote:
Thu Nov 21, 2019 8:39 am
Hello,

Thinking of purchasing the Leaf here in California and thought I'd ask here since you guys have actually gone thru the process as the websites have conflicting information.

If they say for example there is a $5,000 federal tax credit, does that mean you only get that credit if you owe at the end of the year? I'm a regular W2 employee with no deductible expenses or a mortgage, so i usually end up receiving about $10k back from the federal return and $4k from CA state return each year. Does this mean the tax credit from buying the leaf will be $0 for me? It says somewhere that you only get the tax credit if you have a bill due to the IRS. Can you elaborate on how this all works? Thanks for any advice!
No.

You need a basic course on taxation. What you pay or receive from the IRS when filing your return has NOTHING to do with your tax liability.

You need to seriously decrease your withholding. What you are doing is simply insane. Letting Uncle Sam hold 10 grand at zero interest is...INSANE!

Get your last paycheck from 2018 and tell me what your federal tax withholding was. Subtract that from your refund. that is your tax liability.
2011 SL; 44,598 mi, 87% SOH. 2013 S; 44,840 mi, 91% SOH. 2016 S30; 29,413 mi, 99% SOH. 2018 S; 25,185 mi, SOH 92.23%. 2019 S Plus; 2640.9 mi, 99.37% SOH
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cboyd
Posts: 1
Joined: Fri Nov 22, 2019 4:42 pm
Delivery Date: 11 Nov 2019
Leaf Number: 319701

Re: Leaf Tax Credit Question (USA)

Fri Nov 22, 2019 5:20 pm

jlv is correct if you filed 2018 federal IRS form 1040: Line 15 is "Total tax", the total tax you owed in 2018 (it's line 61 if you filed 1040NR). If you had bought your Leaf in 2018 and that number was 7,800 or more, you would have gotten 7,800 back. If it was anything less, the "Total tax" is the maximum you would have received.

HOWEVER, your 2018 "Total tax" is only an estimate for your 2019 "Total tax". If your circumstances have changed -- more or less income, more or fewer dependents, a marriage or divorce, other nonrefundable credits, etc., you need to adjust that figure accordingly. It is your 2019 "Total tax" that matters, since you will be claiming the credit in 2019.

(This answer is based on my training as a volunteer tax preparer for AARP.)

Dougie
Posts: 5
Joined: Sat Dec 19, 2015 8:18 am
Delivery Date: 0- 0-2016

Re: Leaf Tax Credit Question (USA)

Wed Jan 15, 2020 1:32 pm

How close is Nissan to the limit that will eliminate the federal tax incentive?

mkwilkes
Posts: 25
Joined: Thu Sep 28, 2017 2:22 pm
Delivery Date: 19 Jun 2018
Leaf Number: 311155
Location: Salem, Oregon

Re: Leaf Tax Credit Question (USA)

Wed Jan 15, 2020 3:06 pm

Those over 59 1/2, with an IRA, can do a partial Roth conversion to create additional tax liability. Convert just enough of your traditional IRA to a Roth IRA to reach the $7500 tax liability. Say you are retired and buy a new Leaf, qualifying for the $7500 Federal tax credit. If your Federal tax liability is $6000, you would be forfeiting the extra $1500 of tax credit. Use the partial Roth conversion strategy to create the additional $1500 of tax liability. You'll have to pay tax on your IRA, eventually. Why not get it back in the form of an EV tax credit?
2018 LEAF S (Silver)
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cwerdna
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Re: Leaf Tax Credit Question (USA)

Wed Jan 15, 2020 3:07 pm

Dougie wrote:
Wed Jan 15, 2020 1:32 pm
How close is Nissan to the limit that will eliminate the federal tax incentive?
https://insideevs.com/features/337511/n ... ax-credit/ from Nov 2018. Even if they were close, there's the phaseout period discussed there.

It's not even at $0 for GM yet. GM has it at $1875 until end of March 2020.

https://www.fueleconomy.gov/feg/taxevb.shtml confirms that non-Tesla and non-GM still have the full tax credit amounts.

There would probably be an equivalent of https://www.irs.gov/newsroom/plug-in-el ... on-april-1 once Nissan crosses 200K.

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mkwilkes
Posts: 25
Joined: Thu Sep 28, 2017 2:22 pm
Delivery Date: 19 Jun 2018
Leaf Number: 311155
Location: Salem, Oregon

Re: Leaf Tax Credit Question (USA)

Wed Jan 15, 2020 3:18 pm

This site says total Leaf US sales are around 133,000 through April of 2019.

https://insideevs.com/news/347565/nissa ... k-us-2019/
2018 LEAF S (Silver)
Options: Charge package, All weather package
Build Date: 4-18
Purchased: 6-19-18
MSRP $33,440, Final price $26,296 ($16,296 after Federal/State tax credits)
Prior LEAF: Sold
2015 LEAF S (Red)
32,750 miles, 12 bars, 93% SOH

cwerdna
Posts: 9994
Joined: Fri Jun 03, 2011 4:31 pm
Delivery Date: 28 Jul 2013
Location: SF Bay Area, CA

Re: Leaf Tax Credit Question (USA)

Wed Jan 15, 2020 3:22 pm

mkwilkes wrote:
Wed Jan 15, 2020 3:18 pm
This site says total Leaf US sales are around 133,000.

https://insideevs.com/news/347565/nissa ... k-us-2019/
That figure's old. You need to subtract out 3,636 and add 12,365 from https://insideevs.com/news/343998/month ... scorecard/. Should be just shy of 142K. Looks like Nissan's got awhile to go unless there's some change to the laws.

It is kind of sad to see how Nissan squandered their lead in the US.

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Please don't PM me with Leaf questions. Just post in the topic that seems most appropriate.

Dougie
Posts: 5
Joined: Sat Dec 19, 2015 8:18 am
Delivery Date: 0- 0-2016

Re: Leaf Tax Credit Question (USA)

Wed Jan 15, 2020 6:29 pm

Thanks for the info. I just didn't want to get 99% of the way through a purchase negotiation and have the incentive disappear on me!

Now just have to convince the dealer that a 2019 car in January 2020 can't actually be sold at MSRP. Wish me luck.

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