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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.
I can help with that, having already claimed it two years ago when I bought my Chevy Bolt.

In a nutshell, the $7500 tax credit is NONrefundable, which means it gets applied to taxes you owe only. So if you owe, say, $6000 in taxes the year you buy your EV, you only get a $6000 credit, not the full $7500.

You claim the tax credit by filling out a special IRS form, 8936, when you do your taxes for the year you bought the car-- i.e. if you bought it this year, 2022, you would claim the tax credit when you do your 2022 taxes NEXT year around this time-- so you have to wait up to a year for the money.

The best way to determine whether you likely have enough taxes owed to claim the full credit is to look at your most recent tax return-- "taxes owed" is a line item on the first page. If you owed $7500 in taxes last year, you probably will this year too.

But the caveat is that this is not guaranteed. Any significant change to your financial situation, such as loss of a job/income, getting married, or other things that would affect your tax status, could change potentially lower your tax liability and prevent you from getting the full credit when it comes time to file.

Which is why it would be much better if the credit was refundable (so you'd get it no matter how much you owe), or better yet, applied to the purchase price of the car.

But it is what it is. Better than nothing, right? :)
 

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Also, if you draw money from your 401k or traditional IRA account to pay for the car, you will likely reach a threshold for receiving a full $7.5K credit toward taxes owed. Potentially, you can draw a large amount without paying a dime in taxes. See your tax preparer for clarification and calculations.
 

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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.
For any GA Power customers who may be interested, I've received my January Bill, and all I can say is they've managed to obfuscate their billing even further. There are seven different fee schedules that compound upon each other, and they don't detail all of them on the bill. I have a spreadsheet I've used to figure all this out, and historically I could plug in my kwh usage and # of days in the billing cycle, and match what they billed me to a penny. Almost all the fee schedules changed this month, and this "interim fuel rider" fee is new. The verbiage of this new rider sounds as though it should be added to the base $/kwh fee schedule (which also went up this month), but if I add it my calculation is a few bucks higher than my bill, and if I don't it's a few bucks below. Regardless, I used just slightly less power than I did last month (1076kwh last month to 1075), yet my bill went up from $123.74 to $129.22. So the rates apparently went up about 4.5%, but it seems to be impossible to accurately identify exactly how/where. :rolleyes:
 

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I have written the following to both of my state's US Senators, and I encourage all EV6 enthusiasts to write a similar email/letter to their Senators, also:

I want to follow up on my previous email to you regarding the EV portion
of the "Build Back Better Act". It's increasingly obvious that the BBB Act will not pass in its large
form in the Senate, and that it will be split up into numerous individual bills for hopeful passage.
I am assuming that the EV portion of the bill will pass with large bi-partisan support because of
the simple fact that it reduces the amount of money given by the federal government to EV buyers
-- namely by imposing both MSRP limits on all EVs sold (currently there are no such limits) and
upper-income levels (again, there are no such limits currently), and by reducing maximum tax
credits for PHEVs (with battery packs < 40 kWh) from $7500 to $4000. I would like to suggest
that you eliminate the MSRP limit as unnecessary (and needlessly penalizing to those of us
interested in buying EVs), because the limits in the House version of the bill are arbitrary and
nonsensical.

For example, there's a limit of $80k MSRP for SUVs and pickup trucks, but only $55k MSRP for
"sedans" -- but there are so many crossovers now that create a continuous "spectrum" of
vehicle sizes/shapes from large SUVs down to hatchback sedans now. Let me give you a
great example -- one that potentially impacts me. Kia has a new BEV called the EV6 coming
out this year in the US; the one with the larger battery pack (so, better range) and AWD costs
$58k (MSRP), which would fail the House "test" if classified as a sedan but pass the test if
classified as an SUV. The Kia EV6 is a cross between an SUV and a hatchback sedan -- so
a "crossover", but it makes a huge difference for tax purposes as to how it's classified, and,
frankly, that's absurd (as I'm sure you can realize). I think that the same holds for the Ford
Mach-E, which has an extended-range AWD version that's around $62k -- but the Mach-E is
also a hatchback crossover that's somewhere between "sedan" and "large SUV".

I think that the limit on income tax is entirely sufficient to keep "rich" people from claiming
the tax credit -- which ostensibly is the goal; wouldn't you agree? Make the income limit
something like $150k (or $200k or whatever) filing jointly, for example, above which you can't
claim the tax credit. But don't put an MSRP limit on it at all. Some people earning, say, $140k
can and want to buy an EV that costs $60k or $75k or $100k -- so let them do so! Make
income the sole criterion, or else make the EV MSRP limit more like $150k.

Thanks for your attention. I personally find some of the cheaper EVs unappealing, and
the tax credit is more likely to get me into an EV that I'll use.

+++
 
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