EV Tax Credit and 2022 F150 Lightning

[greenne]

Yes. You need to pay == you owe. And does not matter how much withheld by payroll.

That is correct.. however in your original post you said "the amount you pay" *NOT* the "amount you need to pay". Perhaps a typo.. but can be two very different things....

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[Carminus]

I found that what this person posted Link said to use line 16 (2020 tax year).

My tax return line 16, 18 and 24 are all the same numbers.

Here is the ev tax form for 2021:

Tax form

 

[greenne]

I found that what this person posted Link said to use line 16 (2020 tax year).

My tax return line 16, 18 and 24 are all the same numbers.

Here is the ev tax form for 2021:

Tax form

I know you're trying to help..but the article posted is not 100% accurate.

While nothing is technically incorrect..
The author leaves some very big info out.

Most notably...while the total tax(line 16) may give you some indication if you are close to taking full credit..based on taxable income alone, you may not be able to utilize the EV credit to its fullest if you have other non refundable credits (including child tax credit, adoption credit, etc). The article completely ignores schedule 3 which could have a big impact on whether you can use the EV credit ir not

I get a big cringe when anyone in the tax profession says *probably*.

I once again urge people if in doubt seek a tax professional, not to rely on information off the internet

 

[Slick68]

Well, all I know is there are three certainties in life; Death, taxes and waiting on our 2022 F-150 Lightnings, and I’m not sure which is worse

 

[DJBull]

I know you're trying to help..but the article posted is not 100% accurate.

While nothing is technically incorrect..
The author leaves some very big info out.

Most notably...while the total tax(line 16) may give you some indication if you are close to taking full credit..based on taxable income alone, you may not be able to utilize the EV credit to its fullest if you have other non refundable credits (including child tax credit, adoption credit, etc). The article completely ignores schedule 3 which could have a big impact on whether you can use the EV credit ir not

I get a big cringe when anyone in the tax profession says *probably*.

I once again urge people if in doubt seek a tax professional, not to rely on information off the internet

Agreed!

For anyone not sure if they will qualify for all/part of the credit, I recommend you spend a couple hundred dollars and talk with a CPA or Certified Tax Preparer. They can analyze your previous years taxes and take any info you have about this year and put that together to let you know if you will qualify. We did this before purchasing our Hybrid Pacifica, while I didn't want to spend the money, I couldn't confidently tell on my own if we would qualify and thought it's worth $200 to make sure I don't miss out on thousands.

Also if you don't qualify for all/part of the credit, there may be ways to fix that before the year is over i.e. pull some money out of a retirement account which creates a taxable event and would increase your tax liability for the year. Again discuss those options with someone qualified.

 

[Amps]

Well, all I know is there are three certainties in life; Death, taxes and waiting on our 2022 F-150 Lightnings, and I’m not sure which is worse

I think I prefer the ones that don't come in a box or an urn.

 

[RickLightning]

Also if you don't qualify for all/part of the credit, there may be ways to fix that before the year is over i.e. pull some money out of a retirement account which creates a taxable event and would increase your tax liability for the year. Again discuss those options with someone qualified.

This would not be smart unless one is taking RMDs (Required Minimum Distributions). Rollover money from a taxable retirement account into a Roth retirement account is the better option.

To pull money from a taxable traditional retirement account (and not put it in a Roth account) just to generate tax liability to use this credit would be crazy unless you're taking RMDs.

 

[DJBull]

This would not be smart unless one is taking RMDs (Required Minimum Distributions). Rollover money from a taxable retirement account into a Roth retirement account is the better option.

To pull money from a taxable account (and not put it in a Roth account) just to generate tax liability to use this credit would be crazy unless you're taking RMDs.

There are too many different scenarios to account for, but you mentioned a Roth IRA, there are many great benefits to having a Roth IRA vs traditional 401k, converting all or part of a traditional account to a Roth is a somewhat common practice. And that conversion means you would not have to pay the penalty, only the taxes.

There are certain situations where this may or may not make sense for someone, the whole point of my comment is don't think that you have zero options if it looks like you don't qualify, ask a qualified professional to see if there's anything that can be done before the year is over.

 

[Slick68]

I think I prefer the ones not that don't come in a box or an urn.

For us Big Lebowski fans…

 

[TRP]

So many tax professionals here.....

I appreciate that folks are trying to help, but everyone is going to be different. Please consult your preferred tax professional for your personal situation.

 

[hturnerfamily]

ahhhh.... the forum police have arrived, again. It's amusing that some just can't bring themselves to somehow 'forewarn' all of you 'novices' that they just assume the you can't think for yourselves. It's amazing that anyone, and I mean anyone, would rely on ANY 'advice'(and I use that term VERY loosely) typed on any of these 'forums'....

OF COURSE, we all ALREADY know to 'check with your tax professional for your specific situation and advice'.....DUHHHH!

This forum is simple conversation, around a campfire, nothing more. Nobody is running to 'do' their taxes based on what you have 'said' here. We are all just adding our comments. Right or Wrong is not the object, after all, we're probably ALL mostly wrong, most of the time, in 'most' situations. : )

 

[greenne]

OF COURSE, we all ALREADY know to 'check with your tax professional for your specific situation and advice'.....DUHHHH!

This forum is simple conversation, around a campfire, nothing more. Nobody is running to 'do' their taxes based on what you have 'said' here. We are all just adding our comments. Right or Wrong is not the object, after all, we're probably ALL mostly wrong, most of the time, in 'most' situations. : )

Oh really? Then why even ask the question if you don't want an answer? If people always knew to check with their tax professional, why would they even bother to pose the question.

"right or wrong" is very much the issue here. This isn't a popularity contest and NO I don't have to respect your opinion if you are factually wrong.

 

[greenne]

This forum is simple conversation, around a campfire, nothing more.

Really..when was the last time you sat around the campfire and discussed tax strategy just for kicks?

(Except maybe TaxmanHog...)

 

[Maquis]

Really..when was the last time you sat around the campfire and discussed tax strategy just for kicks?

(Except maybe TaxmanHog...)

We discuss all sorts of things here that most of use aren’t qualified for. Why spoil the fun?

 

[greenne]

We discuss all sorts of things here that most of use aren’t qualified for. Why spoil the fun?

Touche`

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