Randy wrote:I could see residents of CA paying sales tax on the whole amount of the car, but I thought the state rebate was exactly that, a rebate on money I've already paid for the car. If they taxed the rebate, wouldn't that be double-taxing? Of course, nothing would surprise me
Randy
As a teacher, my salary is low enough that there's NO WAY I'll ever come close to paying $7500 in federal taxes in a single year... not even half that.EVDRIVER wrote:I have read the credit does not forward- the terms are listed on the IRS site I believe. This credit then only favors individuals in certain income brackets. Seems a bit discriminatory.
I'm not sure whether it is just income tax or income tax + payroll taxes.earther wrote:As a teacher, my salary is low enough that there's NO WAY I'll ever come close to paying $7500 in federal taxes in a single year... not even half that.
However, a tax credit is a tax credit -- I can't really complain about the government incentivizing me to purchase an EV just because rich people are incentivized more.
-Steve
evnow wrote:I'm not sure whether it is just income tax or income tax + payroll taxes.earther wrote:As a teacher, my salary is low enough that there's NO WAY I'll ever come close to paying $7500 in federal taxes in a single year... not even half that.
However, a tax credit is a tax credit -- I can't really complain about the government incentivizing me to purchase an EV just because rich people are incentivized more.
-Steve
I would double check that. Just like people thought the "Cash for Clunkers" cash was to be treated as taxable income. It wasn't. It was a lie spread by extreme right-wing whack jobs hoping for the failure of the program so that Obama would look bad.EVDRIVER wrote:Please note that those in CA that get the state $5K will most likely be required to claim it as taxable income, so it's not really $5K after you pay taxes on it.
chijayhawker wrote:I would double check that. Just like people thought the "Cash for Clunkers" cash was to be treated as taxable income. It wasn't. It was a lie spread by extreme right-wing whack jobs hoping for the failure of the program so that Obama would look bad.EVDRIVER wrote:Please note that those in CA that get the state $5K will most likely be required to claim it as taxable income, so it's not really $5K after you pay taxes on it.