F-150 Lightning EV Tax Credits & Rebates - Discussions & Predictions

[Pilot2022]

What landslide unless you are trolling? Yeah he got 300+ electoral votes, it margins in five states were razor thin that it could have gone the other way like in 2016. It should have been a landslide but tells you it was as much people voting for one side but voting against the other side.

I am supportive of some safety nets but some items in the bill are pure pork and won’t be surprised if house flips in 2022.

apologies for the rant! Happy Saturday!

Appreciate your concern re Dem election prospects, but let’s not forget that everything that’s in BBB is the exact stuff that Biden/Dems ran on last year. And won by a landslide, so I’m not too sure about this political suicide thing. We’ll see soon enough.

Sponsored

 

[Losi]

What landslide unless you are trolling? Yeah he got 300+ electoral votes, it margins in five states were razor thin that it could have gone the other way like in 2016. It should have been a landslide but tells you it was as much people voting for one side but voting against the other side.

I am supportive of some safety nets but some items in the bill are pure pork and won’t be surprised if house flips in 2022.

apologies for the rant! Happy Saturday!

I think the landslide Nick is referencing is the orange dude losing the House, Senate, and WH for the first time in over 90 years, but I agree, it probably had as much to do with being anti-whatever as it did being pro-Biden. There’s a reason McQarthy didn’t mention BBB much in his speech—because he’s afraid his constituents will get passed the socialist rhetoric and find things that will improve the quality of their lives. It’s far from perfect—there’s a few things I find disagreeable—but to tank it completely because Pelosi sucks or because government can’t do anything is narrow-minded at best, fatalistic at worst. I enjoy the political banter, but the other thread got locked because of it. I wish Ford would just roll this f#%*ing thing out so we have something tangible and concrete to discuss.

 

[Brian Head Yankee]

Not sure where you come up with your stats but let's just move on from the political side of it.

 

[F150ROD]

Both Sides......Both Sides......

 

[jefro]

I'd prefer a level refundable credit for all makers. The ship on US and Union made stuff has been diluted for the past 40 years to the point that there isn't any US made nothing.

I'd like to see it all or mostly US made by people making living wages though.

 

[KR17601]

Not to sound like we all don't know what to do, wouldn't you just raise your deductions so you bring home more monies thus when you file your taxes and you adjust to what is correct, you will have a tax liability ?

 

[shutterbug]

Not to sound like we all don't know what to do, wouldn't you just raise your deductions so you bring home more monies thus when you file your taxes and you adjust to what is correct, you will have a tax liability ?

No!!! Your deductions don't impact you tax liability. Your tax is on line 16 of your 1040. Your withholding is on line 25d.

 

[KR17601]

No!!! Your deductions don't impact you tax liability. Your tax is on line 16 of your 1040. Your withholding is on line 25d.

I still disagree, if I take more exemptions than what I'm allowed, I will get more monies back within my paycheck. Once I do my taxes at the end of year and take the right amount of exemptions, I will owe taxes thus, I have a tax liability.

 

[shutterbug]

I still disagree, if I take more exemptions than what I'm allowed, I will get more monies back within my paycheck. Once I do my taxes at the end of year and take the right amount of exemptions, I will owe taxes thus, I have a tax liability.

And you would still be wrong. Your exemptions on W4 impact amount withheld from your paycheck. Your withholding amount is nothing more than payments on your tax liability which is determined by your taxable income and family size. If you claimed too many dependents, all that will change is how much more money you need to pay to IRS. You could claim 0 dependents or a 100 on W4. Your actual tax liability will remain the same.

 

[MickeyAO]

I still disagree, if I take more exemptions than what I'm allowed, I will get more monies back within my paycheck. Once I do my taxes at the end of year and take the right amount of exemptions, I will owe taxes thus, I have a tax liability.

The amount you OWE will not change. The only thing that will change is the check you have to write at the end of the year to cover the taxes. Think of withholdings as payments on the tax debt.

 

[sotek2345]

And you would still be wrong. Your exemptions on W4 impact amount withheld from your paycheck. Your withholding amount is nothing more than payments on your tax liability which is determined by your taxable income and family size. If you claimed too many dependents, all that will change is how much more money you need to pay to IRS. You could claim 0 dependents or a 100 on W4. Your actual tax liability will remain the same.

Maybe a bit pedantic, but if you claim too many exemptions through the year (and significantly underpay taxes), it can actually increase you tax liability via penalties. Not a fun place to be!

 

[HtownHog]

I still disagree, if I take more exemptions than what I'm allowed, I will get more monies back within my paycheck. Once I do my taxes at the end of year and take the right amount of exemptions, I will owe taxes thus, I have a tax liability.

not really Ken, your tax liability is how much total tax you owe to the government every year, not how much you owe or get refunded based on deductions/credits. You are stating you are going to adjust your W4 exemptions or filing status so that each paycheck has less income tax withdrawn but it does not change your liability figure, just how much at the end of the year you have to add or subtract to equal your liability.

Little test for you, say you are single no kids and make $100k/year. standard deduction gives you $87,450 taxable income so $15,000 in LIABILITY. You are a W4 employee and set it up to have $500 per paycheck taken out (26 paychecks) so you paid $13,000 in taxes. You OWE $2,000 more but your liability is still $15,000. You could adjust the next year and only pay $400 per month, not changing your tax liability puts you on the hook for $4,600 OWED. Most people would chose to pay a little more and receive a refund or try and pay just a little/break even.

note that underpaying your W4 withholdings could result in a underpayment penalty-this mostly applies to people estimating their taxes and kicks in at not paying 90% of the liability but could be applied on W4 employees too.

 

[KR17601]

not really Ken, your tax liability is how much total tax you owe to the government every year, not how much you owe or get refunded based on deductions/credits. You are stating you are going to adjust your W4 exemptions or filing status so that each paycheck has less income tax withdrawn but it does not change your liability figure, just how much at the end of the year you have to add or subtract to equal your liability.

Little test for you, say you are single no kids and make $100k/year. standard deduction gives you $87,450 taxable income so $15,000 in LIABILITY. You are a W4 employee and set it up to have $500 per paycheck taken out (26 paychecks) so you paid $13,000 in taxes. You OWE $2,000 more but your liability is still $15,000. You could adjust the next year and only pay $400 per month, not changing your tax liability puts you on the hook for $4,600 OWED. Most people would chose to pay a little more and receive a refund or try and pay just a little/break even.

note that underpaying your W4 withholdings could result in a underpayment penalty-this mostly applies to people estimating their taxes and kicks in at not paying 90% of the liability but could be applied on W4 employees too.

If you do nothing and pay what your supposed to pay you can't take advantage the tax

not really Ken, your tax liability is how much total tax you owe to the government every year, not how much you owe or get refunded based on deductions/credits. You are stating you are going to adjust your W4 exemptions or filing status so that each paycheck has less income tax withdrawn but it does not change your liability figure, just how much at the end of the year you have to add or subtract to equal your liability.

Little test for you, say you are single no kids and make $100k/year. standard deduction gives you $87,450 taxable income so $15,000 in LIABILITY. You are a W4 employee and set it up to have $500 per paycheck taken out (26 paychecks) so you paid $13,000 in taxes. You OWE $2,000 more but your liability is still $15,000. You could adjust the next year and only pay $400 per month, not changing your tax liability puts you on the hook for $4,600 OWED. Most people would chose to pay a little more and receive a refund or try and pay just a little/break even.

note that underpaying your W4 withholdings could result in a underpayment penalty-this mostly applies to people estimating their taxes and kicks in at not paying 90% of the liability but could be applied on W4 employees too.

How else do you purpose to take the full value of the tax credit if you don't owe the IRS any monies

 

[HtownHog]

If you do nothing and pay what your supposed to pay you can't take advantage the tax



How else do you purpose to take the full value of the tax credit if you don't owe the IRS any monies

Hence the TAX LIABILITY. same example above single/no kids 100k salary owing $15,000 in tax liability but only paid $13,000. Now you buy the truck and it qualifies for a $7,500 credit. that goes into the credits calculation and reduces your tax LIABILITY from $15,000 to $7,500, HOWEVER, you paid $13,000 already. When you file your taxes in Jan-April timeframe you now get a TAX REFUND of $5,500 since your credit of $7,500 is less than your tax LIABILITY. This is the sticking point with the current language, lower income people can't qualify for the full credit since they sometimes don't have enough liability hence the POS language and changing it to a REBATE instead of a CREDIT.

Recommend you go and talk to a tax professional to determine your unique situation, hell put your Adjusted Gross Income value here (from your previous year's tax return) and we could probably help you. Personally I am not planning to change my W4 witholdings bc the tax situation may or may not result in the credit being applicable at the end of the year or POS so I'm keeping mine the same. If it results in me overpaying one year on payroll and getting a huge refund then so be it, better than coming up $5,000-$10,000 short and owing a huge check in April.

 

[PungoteagueDave]

It looks like we’ve rounded the corner. While the Dems will continue to go through the motions in the Senate, there’s no way Manchin and a few other centrist Dems there can look past yesterday’s CBO “reality” pricing of BBB - so it is truly dead at this point. Which may be why Ford is now putting up Lightning pricing. Early reservations should count on the $7,500 credit, regardless of pricing (no $80k limit), with full phase-out late next year. The biggest risk to Lightning orders is a fast or elevated Mach-E production/sales pace - every Mach E delivery will reduce the credit availability to Lightning buyers.

Sponsored