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Kia EV6 FE - Silver & Charger
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Discussion Starter · #1 ·
Hi all - looking for previous USA EV buyers for this one, with 2 questions.

1. Makers love to include the EV Tax Credit amount in the "price" of the car. For instance, Tesla (sketchily) displays a default price that subtracts fuel savings already, and all media/review outlets proclaim "after credit it's only $xx,xxx!" When doing your math for payment amount, total cost, etc., are you including the Tax Credit somewhere, or just taking it as a nice win come tax time?
2. Claiming said Tax Credit. I understand that it is NOT a rebate, and will not generate a +$7,500 line item on your return. As someone who normally gets a refund, how do I ensure I have the proper liability to maximize the credit? Do you need to adjust your withholding to create a >$7,500 deficit? Or am I totally off on this?

Thanks in advance. There is plenty of info on WHAT the Tax Credit is, but not as much on HOW to claim it.
 

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Haven't purchased yet, but have worked through the numbers and all a fair amount. Also, not a financial person so I may be wrong

For question 1, I would assume that's a more situation-dependent answer. Can you afford the payment without factoring in the credit? Some dealers will lease it to you and knock the credit off the price since they get to claim it. I think MurlinatoR has mentioned there may be a way to get the credit off the sticker price even if you're purchasing it, but I'm not sure - that was one component of the BBB bill that I think a lot of us here would have liked, it was a point-of-sale reduction.

For question 2, it related to your total tax liability. If your total tax liability for the year is greater than $7,500 than you get the full amount when you file. If it's less than that, you get however much you owed for the year. As best I can tell, this is how it would work in a couple scenarios.

You file taxes, and your total tax liability is $10,000. You had $11,000 withheld and bought a shiny new EV6. You get $8,500 back since the credit adds to what you had withheld, and the refund does not exceed your total liability.

You file taxes, and your total tax liability is $5,000. You had $6,000 withheld and bought a shiny new EV6. You get $5,000 back since you can't get refunded more than you owed.

I hope this helps (and is right).
 

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Hello,

I have been through the process twice (two EV purchases) and the answer above is spot on as far as tax liability. Other issues,

1. Make sure your tax software knows about the EV credit, back in the day (2014) Turbotax did not.
2. The rebates are in flux, who knows what Congress/US Govt will do and when it will go in effect.
3. Make sure you understand your state situation. When I submitted my Bolt credit to MD they gave me too small of a rebate because they thought it was a typo and I purchased A Volt...hah hah..a couple of phone calls fixed things.
4. Look for other state credits, MD payed for my charger.

#2 has me scared.
 

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Kia EV6 FE - Silver & Charger
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Discussion Starter · #4 · (Edited)
Thanks all, I think it's clear. GA went from leader to laggard in EV adoption, so no state considerations other than the absurd EV registration tax (equivalent to gassing up a Hummer every week for a year in gas taxes).

My taxes were extremely simple for the majority of my working life (active duty Navy, no state income tax), so it's a bit of a blind spot for me (and don't even start on healthcare).

So, bottom line is: If you make enough money to have $7,500 or greater in federal taxes, withholding amount regardless, you will receive the full credit, netted out in refund/tax owed. Correct?
 

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Thanks all, I think it's clear.
My taxes were extremely simple for the majority of my working life (active duty Navy, no state income tax), so it's a bit of a blind spot for me (and don't even start on healthcare).

So, bottom line is: If you make enough money to have $7,500 or greater in federal taxes, withholding amount regardless, you will receive the full credit, netted out in refund/tax owed. Correct?
I'm not positive, but I think if your excess withholding + the $7,500 exceeds your total liability you would only get your total liability back. So if your liability was $10k, you had $14k withheld, and bought an EV you would only get $10k back and not $11.5k ($4k excess withholding + $7.5k EV credit).
 

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Thanks all, I think it's clear. GA went from leader to laggard in EV adoption, so no state considerations other than the absurd EV registration tax (equivalent to gassing up a Hummer every week for a year in gas taxes).

My taxes were extremely simple for the majority of my working life (active duty Navy, no state income tax), so it's a bit of a blind spot for me (and don't even start on healthcare).

So, bottom line is: If you make enough money to have $7,500 or greater in federal taxes, withholding amount regardless, you will receive the full credit, netted out in refund/tax owed. Correct?
Yes I miss that $12,500 Federal and Georgia tax credit for sure.

I leased a Nissan Leaf 2013 for almost nothing for two years thanks to that money. And they paid for half of my level 2 setup and it’s installation!

Also, I think that Atlanta sold or leased more of those Nissan Leafs than any other place in the USA.

When the $5000 Ga credit went away, the party was over…well half over maybe
 

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Discussion Starter · #7 ·
Yes I miss that $12,500 Federal and Georgia tax credit for sure.

I leased a Nissan Leaf 2013 for almost nothing for two years thanks to that money. And they paid for half of my level 2 setup and it’s installation!

Also, I think that Atlanta sold or leased more of those Nissan Leafs than any other place in the USA.

When the $5000 Ga credit went away, the party was over…well half over maybe
Discovering the $0.01 Georgia Power Super Off Peak charging rate sure added some incentive - hard to beat $0.77 for a 'full tank'.
 

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I'm not positive, but I think if your excess withholding + the $7,500 exceeds your total liability you would only get your total liability back. So if your liability was $10k, you had $14k withheld, and bought an EV you would only get $10k back and not $11.5k ($4k excess withholding + $7.5k EV credit).
I'm pretty sure you'll get the $11.5k back because your tax withholding is just to make sure you don't get caught with a huge tax bill when you file your tax returns. It's your choice to have that much withheld and some people do that to cover any 1099 income that doesn't have tax withheld. The $7.5k tax credit reduces your tax liability from $10k to $2.5k so you'll get $14k - $2.5k = $11.5k back.

I'm not a tax professional so I'd talk to an accountant to verify my info.
 

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I'm pretty sure you'll get the $11.5k back because your tax withholding is just to make sure you don't get caught with a huge tax bill when you file your tax returns. It's your choice to have that much withheld and some people do that to cover any 1099 income that doesn't have tax withheld. The $7.5k tax credit reduces your tax liability from $10k to $2.5k so you'll get $14k - $2.5k = $11.5k back.

I'm not a tax professional so I'd talk to an accountant to verify my info.
That makes a lot more sense, I bet you’re right. Otherwise you’d still be paying $1.5k in taxes over the liability in my original scenario.
 

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I'm pretty sure you'll get the $11.5k back because your tax withholding is just to make sure you don't get caught with a huge tax bill when you file your tax returns. It's your choice to have that much withheld and some people do that to cover any 1099 income that doesn't have tax withheld. The $7.5k tax credit reduces your tax liability from $10k to $2.5k so you'll get $14k - $2.5k = $11.5k back.

I'm not a tax professional so I'd talk to an accountant to verify my info.
I have my very own CPA….my wife. She’s an external auditor though and doesn’t do as much tax stuff so…

She didn’t believe me about the tax credits with the Nissan Leaf either, but when we got the Ga $5000, she did.
The $7500 was Nissans of course since I leased, but we did realize some of it.
My payment was $280 a month for two years I think, so $28 a month out of pocket.

I cost me around $1 a day in electricity if I remember correctly, with zero maint during that two year lease except battery checks.
It was so nice passing gas stations too and my friends that were making fun of me before, were all trying to buy/lease a Leaf.

Oh, and it was a $28,000 car (sticker) in 2013, but when I went to turn it in two years later, Nissan offered to sell it to me for $8800!
That was $6500 off of residual I think. I’m not good with those leasing terms so….
 

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Hello,

I have been through the process twice (two EV purchases) and the answer above is spot on as far as tax liability. Other issues,

1. Make sure your tax software knows about the EV credit, back in the day (2014) Turbotax did not.
2. The rebates are in flux, who knows what Congress/US Govt will do and when it will go in effect.
3. Make sure you understand your state situation. When I submitted my Bolt credit to MD they gave me too small of a rebate because they thought it was a typo and I purchased A Volt...hah hah..a couple of phone calls fixed things.
4. Look for other state credits, MD payed for my charger.

#2 has me scared.
Lol @ Bolt vs Volt. I still get those cars mixed up.

I wanted to comment on point #2. I don't think congress can retroactively change the EV tax credit because people make buying decisions based on what the tax law is at the time of purchase. I could be wrong because the way things work in govt is really stupid a lot of the time. I'm partially glad that they didn't change the EV tax credit this year because I was worried that this non-binding resolution of a $40k threshold on the price of electric cars and an income limit of $100k would end up in the Build Back Better bill basically making my tax credit $0. Then I heard the final proposal in BBB act was to increase the tax credit to $12.5K if the battery was made in the US and the vehicle was assembled in the US with union labor but since the EV6 doesn't qualify for the extra $5k in tax credit then it's doesn't matter if things stay as is. As far as I know Kia is not close to hitting the 200k unit sales threshold before the tax credit starts to phase out.
 

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2022 Kia EV6 First Edition Steel Gray Matte
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Kia is miles from 200k. The only mfg'r is Tesla that hit it.
 

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I sit corrected! LOL

With only the Niro PHEV and the just released Sorento PHEV, they have a long way to go before running out. I'm assuming the law will change before they reach the limit.
 

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I sit corrected! LOL

With only the Niro PHEV and the just released Sorento PHEV, they have a long way to go before running out. I'm assuming the law will change before they reach the limit.
Lol @ I sit corrected. Before I saw the EV6 I was interested in the Rav4 Prime but there were elements of the exterior styling that I didn't like and the outdated interior like their infotainment system. It seems like Toyota is finally making an effort to update the infotainment system in some of their newer models. Now I'm not even remotely interested in the Rav4 Prime anymore because of the EV6. The new Lexus 450h+ is a different story except for that huge grill.
 

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I sit corrected! LOL

With only the Niro PHEV and the just released Sorento PHEV, they have a long way to go before running out. I'm assuming the law will change before they reach the limit.
I think that Biden’s plan was to hook Tesla up for another round of $7000 POS, but that’s on the back burner I’m guessing, or maybe even off the board now.
 

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Discovering the $0.01 Georgia Power Super Off Peak charging rate sure added some incentive - hard to beat $0.77 for a 'full tank'.
You have to be VERY careful when looking at GA power's rates. What they advertise as $0.01/kwh during the super off peak hours, is actually a rounded down figure from the actual $0.014993 rate shown on the tariff sheet. So the rate is essentially 50% more than what their marketing pages show. But that's not close to the end of it. You also get charged $.024557/kwh as a fuel cost recovery rider (in the winter - in the summer it goes up to $.025104). Then once you add those two charges together, you add another 1.0553% for demand side management (this actually just went down this year, it was 1.7438%), 18.5179% for environmental compliance (this also just went down from 19.8276%), and 3.813% for nuclear construction cost recovery (down from 5.8456%). Then once you add all that together, add another 3.0487% for a franchise fee (for me. It's lower if you're outside the city limits). Once you do all the math, there's about $0.055/kwh of hidden charges, plus the rounding difference, so that 1c/kwh they advertise for super off-peak is actually about 6c/kwh, or a 600% increase over what the good folks in marketing would lead you to believe. And that's before adding in the $.0395/day service charge, but I don't count that since it's a flat fee, not affected by your kwh usage. Their pricing is so convoluted, and not detailed in your monthly bill, I had to make my own spreadsheet to track their billing.

Also, in the process of checking their site to get the links to all these fees for this post, I noticed an interim fuel rider schedule, which I don't have in my spreadsheet. So I expect this is a new charge this month, which probably just offsets the fact that some of these fees went down from last year. I won't know for sure until I get my January bill.
 
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