I received my final invoice today and it doesn't show the fed tax credit. Will I enter that in my 2013 tax form, or is it already included in the price of the Model S?
no, it is NOT in your invoice, not deducted, that is. so your invoice may be larger than you thought.
you have to file a tex return and you will get the tax credit (meaning you have to owe more than that in taxes!) I don't know if you can carry it over to next year if you don't use it up in one year.
I'll definitely owe more than that. Thanks.. Also, I noticed there wasn't any sales tax on the invoice. Am I going to have to bring a money order for the tax part of the purchase at pickup time?
In Texas (where I am) you have to go pay your taxes yourself, after you pick up the car. I did contact one forum member who said the credit union they were using would collect the sales taxes for them but not in my case, unfortunately.
What state are you in? A few states do not charge sales tax for EV's.
I'm in Texas... That's weird.. Never heard of trying to find ways to pay sales tax.
What if witholdings and misc deductions make your tax liability <$7500? In that case, I "have" more than 7500 in taxes but have already paid most of it through witholdings and advanced payments. In that case, if the net of what I "owe" is <7500, do I loose it? Or do I get a check for the difference since my total tax bill (excluding what I've paid) was well beyond $7500?
It's my understanding that if you don't have any tax obligation, you will get a tax refund of $7,500. It is a tax credit, not a tax exemption. What enforces my thinking is we got a $1,000 education tax credit for our daughter and we got a check for $1,000. Of course it we owed $1,000 in taxes, we wouldn't have received the $1,000.
The tax form you'll need to fill out is form 8936.
I thought I read somewhere that this credit is specifically non-refundable, meaning you will not get a check for the difference if your tax liability is less than the amount of the credit. I also do not think you can transfer the credit to next year either - you either use it the year you bought the vehicle or you lose it.
That's the way I understand how this works - if I'm wrong, please correct me - thanks.
Within 30 days of picking up your Model S at a Service Center with a temporary California License Plate you take it to your local County Government Center and pay 6.25% sales tax and apply for your title and Texas license plates.
That makes sense. Thanks..
Actually it doesn't matter how much or how little you have paid in withholding. What matters is that you have a federal income tax liability. The credit will reduce your liability by up to $7500. If your liability is less than that the credit will wipe out the liability but it will not carry forward.
For anybody who doesn't have that much liability you can do lots of things to increase your liability for 2013. If you can accelerate next years income into this year that would be one way. Another would be to change some of your traditional IRAs into ROTH IRAs or sell some investments to create a capital gain. Any good accountant can come up with ways to increase your tax liability.
And it is absolutely refundable...as long as you owed at least $7500 before withholding, you are good to get the refund/credit.
"Liability" and "owe" are causing confusion. Total tax paid plus owing is the number that must exceed $7500. If 'owing' is less than $7500, you get a refund for the difference (as long as that does not exceed 'paid'.)