Randy said: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
EVDRIVER said: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.
earther said: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 said:earther said: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'm not sure whether it is just income tax or income tax + payroll taxes.
EVDRIVER said: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 said:EVDRIVER said: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.
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.
sjfotos said:I sat down and talked with my accountant today. He was quite aware of the program and had filed returns this past year for the $7,500 credit. He is going to do some research on 2010 and get back to me. He was unsure if the $7,500 tax credit was 'refundable' or not. "Refundable" would meant that you would get money back in a refund, even if you did not have sufficient taxes paid to apply the $7,500 against the tax liability. He thought it was not refundable, but he also observed that there is an increasing number of these programs in recent years that are. I am sure I will hear back shortly and will post here when I do.
sjfotos said:I sat down and talked with my accountant today. He was quite aware of the program and had filed returns this past year for the $7,500 credit. He is going to do some research on 2010 and get back to me. He was unsure if the $7,500 tax credit was 'refundable' or not. "Refundable" would meant that you would get money back in a refund, even if you did not have sufficient taxes paid to apply the $7,500 against the tax liability. He thought it was not refundable, but he also observed that there is an increasing number of these programs in recent years that are. I am sure I will hear back shortly and will post here when I do.
leaffan said:sjfotos said:I sat down and talked with my accountant today. He was quite aware of the program and had filed returns this past year for the $7,500 credit. He is going to do some research on 2010 and get back to me. He was unsure if the $7,500 tax credit was 'refundable' or not. "Refundable" would meant that you would get money back in a refund, even if you did not have sufficient taxes paid to apply the $7,500 against the tax liability. He thought it was not refundable, but he also observed that there is an increasing number of these programs in recent years that are. I am sure I will hear back shortly and will post here when I do.
It's not only unrefundable, but you can't carry over the unused portion to the next tax year either.
leaffan said:sjfotos said:I sat down and talked with my accountant today. He was quite aware of the program and had filed returns this past year for the $7,500 credit. He is going to do some research on 2010 and get back to me. He was unsure if the $7,500 tax credit was 'refundable' or not. "Refundable" would meant that you would get money back in a refund, even if you did not have sufficient taxes paid to apply the $7,500 against the tax liability. He thought it was not refundable, but he also observed that there is an increasing number of these programs in recent years that are. I am sure I will hear back shortly and will post here when I do.
It's not only unrefundable, but you can't carry over the unused portion to the next tax year either.
sjfotos said:leaffan said:sjfotos said:I sat down and talked with my accountant today. He was quite aware of the program and had filed returns this past year for the $7,500 credit. He is going to do some research on 2010 and get back to me. He was unsure if the $7,500 tax credit was 'refundable' or not. "Refundable" would meant that you would get money back in a refund, even if you did not have sufficient taxes paid to apply the $7,500 against the tax liability. He thought it was not refundable, but he also observed that there is an increasing number of these programs in recent years that are. I am sure I will hear back shortly and will post here when I do.
It's not only unrefundable, but you can't carry over the unused portion to the next tax year either.
Yes, that is what I am assuming, but I went to get it confirmed. I believe you are correct.
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