@Anzir: The federal tax incentive is a credit (a dollar-for-dollar reduction in tax owed), not a deduction (a reduction in taxable income). Otherwise, you'd be right.
-
Want to remove ads? Register an account and login to see fewer ads, and become a Supporting Member to remove almost all ads.
2012 Year End Delivery & Tax Credit Issues
- Thread starter Robert.Boston
- Start date
Not if you don't expect to owe $7,500 in taxes next year. And also not if the credit gets axed in the budget negotiations.
The Crazies are in charge so who knows what they'll do, but there is more talk of capping deductions than raising rates. So as usual take whatever deductions or credits you can - whenever you can.
Todd Burch
14-Year Member
I reduced my withholding this year in anticipation of delivery (P1577). I highly doubt I'll see a car before Jan 15. Hope the IRS doesn't fine me.
As far as I recall, you don't have to pay a penalty under these circumstances if you ended up withholding at least 90% of what your tax liability was the previous year. Also, if it gets to the point where you are sure that you won't get your car this year, you can make a payment to the IRS at that time, which may or may not help. You can even do it on their web (the fees vary, but can be as high as over 2% if you use a credit card, or as low as a few dollars if you use a debit card).
I am not an accountant.
You must have withheld the smaller of a) 100% of last year's tax or b) 90% of this year's tax, both post deductions -- the final 'THIS IS YOUR TAX DUE" line on the second page of the 1040.
The interest rate on underpayments is fairly low. However there's a good solution. Change your withholding from now until the end of the year to make up the difference that you need. You can have your entire pay check withheld if necessary. Submit a new W-4 to your payroll dept indicating that you want an additional dollar amount withheld each pay period. The IRS won't fine you because they will automatically think that your W-2 withholding was evenly distributed throughout the year.
Hope this is the right thread - Had a specific question for those of you in california.
Is the CVRP tax rebate also a 'credit', not a deduction? Also from this forum someone was mentioning that the rebate may not be available for FY2013. However, from this website:
Rebate Funding Status
It seems to imply there are still quite a lot of funds? Anyone have any confirmation or further information? thanks!
Is the CVRP tax rebate also a 'credit', not a deduction? Also from this forum someone was mentioning that the rebate may not be available for FY2013. However, from this website:
Rebate Funding Status
It seems to imply there are still quite a lot of funds? Anyone have any confirmation or further information? thanks!
gg_got_a_tesla
Model S: VIN 65513, Model 3: VIN 1913
Rozakk, as per the status page, there's roughly $6.44 million left which will equate to only about 2,500 EVs - not a whole lot given that the Model S alone will have several hundred takers in Calif. in 2013 not counting the LEAF, the RAV 4 EV etc.
Not too confident that the CARB will add much more if at all. There's not too much to go around in the CA budget.
Btw, the CVRP rebate is literally a check that they cut and send to you in the mail once you apply (right after you get your EV) and after they validate the application. It's different from the Federal tax credit that has to be taken care of in your fed tax return.
Not too confident that the CARB will add much more if at all. There's not too much to go around in the CA budget.
Btw, the CVRP rebate is literally a check that they cut and send to you in the mail once you apply (right after you get your EV) and after they validate the application. It's different from the Federal tax credit that has to be taken care of in your fed tax return.
Similar threads
