Kia EV6 Forum banner
21 - 40 of 40 Posts

Registered
Joined
221 Posts
Taxation isn't about what you need.
Oh, what is it about?
The Treasury doesn't work out what they need to spend and then think how to raise the money.
What does it do?
They pitch for as much as they think they can get away with and then think what to spend it on 馃憤
 

Premium Member
EV6 Wind AWD
Joined
71 Posts
There is not limit on how many cars you can get tax credit for in a year, right?
The IRS does not have a limit on the number of credits you can apply. But as mentioned above, your tax liability would have to be pretty substantial to actually reduce it by that amount. Let's say your tax liability is $20,000. You could apply 2 credits and reduce it to $5,000. However, if your tax liability is only $5,000, you would only reduce that to $0 with a single credit and could not apply any more.
 

Registered
Joined
150 Posts
Investments / 401K are taking a beating. She'd like to avoid any unnecessary expenses. I feel like my EV6 was very necessary :)
It's only a beating if you bail out while it's down. Otherwise it's just the come and go of long term investing. Know some are having sleepless nights. When things are down sometimes helps to swear off opening those statements for a year...or two. It'll come back.

Inflation, rising interest rates and the crazy value in your used car might signal that now IS the time if you think you'll need the car within the next few years...
 

Registered
Joined
37 Posts
You will need a copy of the purchase paperwork for your records to keep with your tax return for the next 7 years in case IRS decides to audit your taxes. The government keeps track of what manufacturers still qualify for credits and they publish this every quarter. But again, you will need to owe taxes in order to take advantage of the credit.

I think this is the official website Federal Tax Credits for Electric and Plug-in Hybrid Cars
Just what I needed!
 

Registered
Joined
20 Posts
I filed for the tax credit 2 years ago for a Honda Clarity PHEV.

Assuming you are using a tax program, all you have to do is fill in the vehicle info ( model, year, VIN, purchase date ) into Form 8936 Qualified Plug-in Electric Drive Motor Vehicle Credit.
 

Premium Member
EV6 Wind AWD
Joined
71 Posts
I filed for the tax credit 2 years ago for a Honda Clarity PHEV.

Assuming you are using a tax program, all you have to do is fill in the vehicle info ( model, year, VIN, purchase date ) into Form 8936 Qualified Plug-in Electric Drive Motor Vehicle Credit.
Was your return also delayed by many months?
 

Registered
Joined
12 Posts
You will need to owe $7500 to the IRS for the year, best is to discuss with a tax accountant. You might need to change your W-4 form and add the $7500 to Line 4(b) of the form W-4.
This is not tax advice just general information.
"owe" is the wrong word. I believe you have to have at least a $7500 tax liability. If you have already paid most of your taxes with a W-4 or estimated taxes payments you will get a refund. Works like any other tax credit.
 

Premium Member
EV6 Wind AWD
Joined
71 Posts
"owe" is the wrong word. I believe you have to have at least a $7500 tax liability. If you have already paid most of your taxes with a W-4 or estimated taxes payments you will get a refund. Works like any other tax credit.
The math works out to be the same (if your tax liability is > $7500), however my understanding (from talking to my accountant) is that any credits are applied to the liability before withholding is considered. The credit will only be applied to the extent that your liability goes to $0. What this means is you won't get the full credit if your tax liability is less than $7500.
 

Registered
Joined
457 Posts
As they mentioned to me, if you have paid to the IRS during the year (payroll tax or whatever) and are due a refund the tax credit will not apply. I'm not sure if that's clear. example: if line 24 says your liability is 10K but you have already paid 12K you will not get the tax credit added to the refund.
This is absolutely not true. Your liability is the only thing that matters.

I believe that is correct...but you need the higher tax "bill" to apply your "coupon" to.
I've been trying to convince my SO to sell her 2017 (for almost what she paid)...and get an EV. Ioniq 5 or ID4...but she's spooked by the market and prefers the paid-for ICE instead.
This is right, but I'll add: you technically run afoul of the credit rules if you bought the car with the intent to resell. So in theory, you could reduce your $37,500 tax liability to zero by buying 5 different EVs this year and reselling them used, BUT you'd be on the hook for tax fraud if you did that intentionally, got audited, and they decided to press the matter.

For instance, if you bought a Mach E, had it for a week and decided the skinny tires were unbearable, and sold it, you could claim the credit on that car. If you got in line all at once for a Mach E, a Polestar, an EV6, and an ID.4, figuring you'd immediately resell all the ones you didn't like at a profit since you got MSRP on a direct order, that'd be a problem.

Of course, how the IRS would draw the line is open to anyone's guess.

"owe" is the wrong word. I believe you have to have at least a $7500 tax liability. If you have already paid most of your taxes with a W-4 or estimated taxes payments you will get a refund. Works like any other tax credit.
I think that's just dependent on your definition of "owe." I'd equally use the word "owe" to describe my tax liability and also a hypothetical negative refund come April had I under-withheld. Certainly makes things confusing though - I blame our tax scheme and complete lack of systematic financial education.
 

Registered
Joined
10 Posts
I filed for the tax credit 2 years ago for a Honda Clarity PHEV.

Assuming you are using a tax program, all you have to do is fill in the vehicle info ( model, year, VIN, purchase date ) into Form 8936 Qualified Plug-in Electric Drive Motor Vehicle Credit.
I also filed for the tax credit 2 years ago for a Honda Clarity PHEV. I just traded my Honda in for an EV6 GT RWD so this will be my second tax credit. Bonus, my car insurance went down when I went from the Clarity to the EV6. Since the EV6 is so much more expensive, I really don't know why my insurance went down, but I didn't question it.
 

Registered
Joined
23 Posts
The math works out to be the same (if your tax liability is > $7500), however my understanding (from talking to my accountant) is that any credits are applied to the liability before withholding is considered. The credit will only be applied to the extent that your liability goes to $0. What this means is you won't get the full credit if your tax liability is less than $7500.
I don't know anybody who pays less than $7500 in tax :D. I know people who got their withholding dead on and pay/refunded almost $0 in April. When they got their Tesla, got a $7500 fat check from the government. I always pay a bit so hopefully, i get a refund :D
 

Registered
Joined
150 Posts
I know lots of people that don't pay $7500 a year. I know lots that pay nothing. But none of them live in my neighborhood. I don't think any of them will be buying an EV6. Though, I must admit some of the drive VERY nice cars. Different priorities.

Have considered asking some of them for tax and budgeting advice....lol. 馃
 

Registered
Joined
7 Posts
I know lots of people that don't pay $7500 a year. I know lots that pay nothing. But none of them live in my neighborhood. I don't think any of them will be buying an EV6. Though, I must admit some of the drive VERY nice cars. Different priorities.

Have considered asking some of them for tax and budgeting advice....lol. 馃
I find it quite interesting that people who bought 60K vehicle are concerned about to having at least 7.5K in taxes to get full benefit of tax credit. No judgment ;)
 

Registered
Joined
457 Posts
Tax situations vary widely. It's really none of my business. :cool:
On the one hand, granted. On the other hand, everyone I've personally ever seen ask this question about "will I get an EV rebate" was just confused about how taxes work. Being able to afford a new (even $40k, but certainly $60k) car and having a sub-$7500 tax liability is very much an edge case.
 
21 - 40 of 40 Posts
Top