silvrsvt Posted March 18 Share Posted March 18 2 minutes ago, akirby said: And again this is based on taxes you owe for the year not based on how much you have to pay or get back when you file. How is that work? You have till the end of the year (April 15th) to pay your taxes..so if you have a consulting job that isn't a W2, you'd get a 1099 without taxes taken out...you could elect to pay quarterly taxes on it or just pay it all on April 15th. So effectively an EV credit would eat that amount owed to the government up a decent amount. Example, I buy a car this year 2024 and file on April 15th, 2025. I have a consulting/1099 job that doesn't have taxes taken out of it. Say I owe the government $5000 in taxes then, the EV credit would wipe that out...at least that is how I see it working. Quote Link to comment Share on other sites More sharing options...
akirby Posted March 18 Share Posted March 18 Just now, silvrsvt said: How is that work? You have till the end of the year (April 15th) to pay your taxes..so if you have a consulting job that isn't a W2, you'd get a 1099 without taxes taken out...you could elect to pay quarterly taxes on it or just pay it all on April 15th. So effectively an EV credit would eat that amount owed to the government up a decent amount. Example, I buy a car this year 2024 and file on April 15th, 2025. I have a consulting/1099 job that doesn't have taxes taken out of it. Say I owe the government $5000 in taxes then, the EV credit would wipe that out...at least that is how I see it working. Yes. Those are the actual taxes you pay. But some people who do withholding get confused about taxes vs refunds. E.g. You earned $100k and when you calculate your taxes you owe the govt $20K for the year. If your employer only withheld $18k during the year you owe an additional $2k when you file. If your employer withheld $22K during the year you get a $2K refund. In both cases you paid $20k. And the $7500 rebate would reduce that to $12,500. So if your employer withheld exactly $20k and you claim the full $7500, you only owe $12,500 and would get a $7500 refund. Quote Link to comment Share on other sites More sharing options...
silvrsvt Posted March 18 Share Posted March 18 2 minutes ago, akirby said: Yes. Those are the actual taxes you pay. But some people who do withholding get confused about taxes vs refunds. E.g. You earned $100k and when you calculate your taxes you owe the govt $20K for the year. If your employer only withheld $18k during the year you owe an additional $2k when you file. If your employer withheld $22K during the year you get a $2K refund. In both cases you paid $20k. And the $7500 rebate would reduce that to $12,500. So if your employer withheld exactly $20k and you claim the full $7500, you only owe $12,500 and would get a $7500 refund. The thing is that the standard deduction for a married couple is roughly $22K a year...so the tax "credit" would raise that to $29.5K? Quote Link to comment Share on other sites More sharing options...
akirby Posted March 18 Share Posted March 18 15 minutes ago, silvrsvt said: The thing is that the standard deduction for a married couple is roughly $22K a year...so the tax "credit" would raise that to $29.5K? No because std deduction reduces your taxable income not your actual taxes. Quote Link to comment Share on other sites More sharing options...
HotRunrGuy Posted March 18 Share Posted March 18 49 minutes ago, silvrsvt said: The thing is that the standard deduction for a married couple is roughly $22K a year...so the tax "credit" would raise that to $29.5K? Actually, for tax year 2024, the married couple standard deduction is $29,500 https://www.irs.gov/newsroom/irs-provides-tax-inflation-adjustments-for-tax-year-2024 HRG Quote Link to comment Share on other sites More sharing options...
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