# Purchasing a production EV and strategic tax avoision.



## Ziggythewiz (May 16, 2010)

I'd have to check the form, but it says it's a tax credit, which means it doesn't matter how much you owe. They have been dishonest lately though by calling rebates credits.

How much you withold via W-4 is irrelevant. A tax rebate gets your money back either way if you owe enough to begin with. If you don't have to pay income taxes (or not enough) anyway you can't save with a rebate.

I'm surprised that someone who can afford a qualifying EV wouldn't be paying enough to take advantage of a rebate.


----------



## coulombKid (Jan 10, 2009)

Ziggythewiz said:


> I'd have to check the form, but it says it's a tax credit, which means it doesn't matter how much you owe. They have been dishonest lately though by calling rebates credits.
> 
> How much you withold via W-4 is irrelevant. A tax rebate gets your money back either way if you owe enough to begin with. If you don't have to pay income taxes (or not enough) anyway you can't save with a rebate.
> 
> I'm surprised that someone who can afford a qualifying EV wouldn't be paying enough to take advantage of a rebate.


That's what I was just "what-iffing" on a tax with-holding calculator. For a simple 2 deduction married couple you'd have to have a gross taxable income of about $74,000 per year to be able to discharge the full $7,500 tax credit. If that is correct then the tax rebate is worthless for at least 90% of the voters no matter how much one may have salted away.


----------



## Ziggythewiz (May 16, 2010)

If it's a credit you don't need any taxable income to get the full benefit.


----------



## onegreenev (May 18, 2012)

coulombKid said:


> That's what I was just "what-iffing" on a tax with-holding calculator. For a simple 2 deduction married couple you'd have to have a gross taxable income of about $74,000 per year to be able to discharge the full $7,500 tax credit. If that is correct then the tax rebate is worthless for at least 90% of the voters no matter how much one may have salted away.


You will get the full amount. Everyone gets the full amount on the federal and what ever your state gives. California gave $5k and the Fed $7500. I used it to pay on the car as a principal payment. California is now $2500 but Fed is still $7500. 

It is not a tax credit. 

Pete


----------

