The Money Mustache Community
Learning, Sharing, and Teaching => Ask a Mustachian => Topic started by: boarder42 on October 28, 2021, 02:58:58 PM
-
I hate govt bill jibberish but this bill is finally out in some draft form
https://rules.house.gov/sites/democrats.rules.house.gov/files/BILLS-117HR5376RH-RCP117-17.pdf
page 1240 is EV credits and it says refundable. and later it mentions using previous year AGI so i'm confused. Any bill deciferers tell me exactly what i need to do to get the full 12500 tax credit. Is it refundable so i dont have to have 12500 in income taxes paid or is it based on my 2020 MAGI which works for me too. Just trying to figure out how much trad to roth needs to be converted next year for me to take advantage of this credit on the lighting?
-
No wonder Tesla stock has been on fire lately....
-
You just need to have paid at least $12,500 in Federal income tax.
-
You just need to have paid at least $12,500 in Federal income tax.
In the previous year right. Before refundable credits based on AGI.
-
Also refundable usually means no taxes paid are necessary.
-
It's entirely unclear. But if you look at the section of the tax code that is being amended, it is being added in a subpart that is called Refundable Tax Credits (https://www.law.cornell.edu/uscode/text/26/subtitle-A/chapter-1/subchapter-A/part-IV/subpart-C), and the other examples in that subpart are all known refundable tax credits, so I would say yes.
The part referencing previous year AGI, at least if I'm looking at the same part you're referring to, has to do with whether or not the credit is phased out. The phase out is at very high AGI levels, so I don't think you have to worry about that part.
I didn't look at it that closely, but the credit seems to be broken up into pieces, so to qualify for the full amount you'd have to make sure that the EV you're looking at meets all the various criteria: Built in the US, made from domestic materials, has the right size battery, etc.
-
It's entirely unclear. But if you look at the section of the tax code that is being amended, it is being added in a subpart that is called Refundable Tax Credits (https://www.law.cornell.edu/uscode/text/26/subtitle-A/chapter-1/subchapter-A/part-IV/subpart-C), and the other examples in that subpart are all known refundable tax credits, so I would say yes.
The part referencing previous year AGI, at least if I'm looking at the same part you're referring to, has to do with whether or not the credit is phased out. The phase out is at very high AGI levels, so I don't think you have to worry about that part.
I didn't look at it that closely, but the credit seems to be broken up into pieces, so to qualify for the full amount you'd have to make sure that the EV you're looking at meets all the various criteria: Built in the US, made from domestic materials, has the right size battery, etc.
Ok cool that's kinda what I thought. And yeah I'm on the list for a first run of production lightning so it meets the 12500 criteria.
Agi reference makes more sense now.
Since they are making it a point of sale credit I figured it would have to be refundable as that would cause crazy tax issues for people.otherwise.
-
that would cause crazy tax issues for people otherwise.
Not always a disqualifier ;-P