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.