Sponsored

supamyk

Well-Known Member
First Name
Mike
Joined
Apr 23, 2018
Threads
25
Messages
206
Reaction score
251
Location
Long Island
Vehicle(s)
2021 Rubicon 4xE
There's a great post someone made explaining in detail how it works, but it has nothing to do with refunds it's all about your tax liability. You just need to have at least 7500 of liability to get the full tax credit.

Getting 10k back just means you overpaid for that tax year
So if make over 130,000 a year and get taxes taken out because I am a teacher, I will be fine. Correct
Sponsored

 

ElHobbz

Well-Known Member
First Name
Ed
Joined
Jan 19, 2021
Threads
5
Messages
87
Reaction score
81
Location
San Diego
Vehicle(s)
2020 4wd Tacoma OR
So if make over 130,000 a year and get taxes taken out because I am a teacher, I will be fine. Correct
It's not that easy, for ex: I have a kid, donate, invest (losses), max out 401k fsa hsa and itemize my deductions to decrease my liability. Assuming you are single and don't do any of the above and just take standard deduction and if I were a betting man I would say yes.

Edit: I am not a CPA just a software dev that tries to keep as much as my money as possible....
 

supamyk

Well-Known Member
First Name
Mike
Joined
Apr 23, 2018
Threads
25
Messages
206
Reaction score
251
Location
Long Island
Vehicle(s)
2021 Rubicon 4xE
Thanks. So basically what line do I look at on my return to see if I’m ok?
 

Sponsored

Jeeperz Kreeperz

Well-Known Member
Joined
Jan 15, 2018
Threads
40
Messages
454
Reaction score
490
Location
New Hampshire
Vehicle(s)
2021 JLUR 4xe
Yes, definitely line 24 of form 1040 is the key (Not sure if it will remain as line 24 for 2021), but what you are looking for is your “Total Tax”. This needs to be over $7,500 to get the full $7,500 credit.

I wrote a detailed post about it here that explains in detail how the credit works, and provides a couple of examples that should help clarify the interplay between withholding, refund, tax liability, and EV tax credit:

https://www.jlwranglerforums.com/fo...eage-epa-figures-published.68287/post-1442151

I work with clients on these issues often, and there is a lot of confusion surrounding the EV tax credit. Neither your tax refund, nor your tax bill due at filing time can tell you whether you are eligible for the full $7,500 tax credit. Increasing your withholding will have zero impact on your eligibility for the full credit. It’s all about your tax liability or “Total Tax” (Not to be confused with “Amount You Owe” on line 37!).

As always, with any advice you receive on a forum like this, be sure to run it by your tax advisor! And here’s another tip: If you look at your 2020 form 1040, and line 24 is less than $7,500, but you purchased (or plan to purchase) an 4xe in 2021, talk to your accountant or financial advisor well before year-end about strategies to increase your tax liability (e.g., retirement plan distributions, Roth conversions, etc.) in order to absorb the full credit.
 
Last edited:

dalema

Well-Known Member
Joined
Jul 7, 2019
Threads
13
Messages
737
Reaction score
719
Location
Bay Area
Vehicle(s)
JL392, Golf GTI
The other question floating around is to get confirmation from someone who leases one - as to if this will get applied against the cap cost of a lease - through Chrysler Capital?

Maybe another way to realize it.
 

insomniac

New Member
Joined
Jan 17, 2021
Threads
0
Messages
4
Reaction score
4
Location
WA
Vehicle(s)
None
It's probably not going to be line 24 in 2021 (as the line number will change year to year). But if you want to use 2020 as a guide line 24 will work for your 2020 tax year return.
 

ElHobbz

Well-Known Member
First Name
Ed
Joined
Jan 19, 2021
Threads
5
Messages
87
Reaction score
81
Location
San Diego
Vehicle(s)
2020 4wd Tacoma OR
I
Yes, definitely line 24 of form 1040 is the key (Not sure if it will remain as line 24 for 2021), but what you are looking for is your “Total Tax”. This needs to be over $7,500 to get the full $7,500 credit.

I wrote a detailed post about it here that explains in detail how the credit works, and provides a couple of examples that should help clarify the interplay between withholding, refund, tax liability, and EV tax credit:

https://www.jlwranglerforums.com/fo...eage-epa-figures-published.68287/post-1442151

I work with clients on these issues often, and there is a lot of confusion surrounding the EV tax credit. Neither your tax refund, nor your tax bill due at filing time can tell you whether you are eligible for the full $7,500 tax credit. Increasing your withholding will have zero impact on your eligibility for the full credit. It’s all about your tax liability or “Total Tax” (Not to be confused with “Amount You Owe” on line 37!).

As always, with any advice you receive on a forum like this, be sure to run it by your tax advisor! And here’s another tip: If you look at your 2020 form 1040, and line 24 is less than $7,500, but you purchased (or plan to purchase) an 4xe in 2021, talk to your accountant or financial advisor well before year-end about strategies to increase your tax liability (e.g., retirement plan distributions, Roth conversions, etc.) in order to absorb the full credit.
I was looking for your post!!! It should be a sticky in my opinion. 10k refund sounds like a lot. I thought the goal was to be as close to 0.
 

Bumps Ahead

Well-Known Member
First Name
Valerie & Dion
Joined
Jan 9, 2021
Threads
3
Messages
85
Reaction score
136
Location
Chatsworth, CA
Website
ontherocks4x4.org
Vehicle(s)
2021 JLUR 4XE
Occupation
Happy Wife, Happy Life....
Vehicle Showcase
1
I

I was looking for your post!!! It should be a sticky in my opinion. 10k refund sounds like a lot. I thought the goal was to be as close to 0.
My goals....

Refund = Uncle Sam borrowed free money from you, not ideal
Even = You walked away without a win or a loss, boring
Owe = You used house money to play with for the past year, interest free....BTC anyone? đź’°
 

Sponsored

Jocko

Well-Known Member
Joined
May 25, 2018
Threads
4
Messages
433
Reaction score
477
Location
Boston
Vehicle(s)
Hydro Blue 4xe Rubicon
The other question floating around is to get confirmation from someone who leases one - as to if this will get applied against the cap cost of a lease - through Chrysler Capital?

Maybe another way to realize it.
Take this with a grain of salt since I have not personally closed a lease on a 4xe yet, but my dealer tells me yes and I have seen multiple people post online that they have also gotten confirmation. So it sounds like both Chrysler Capital and Ally are passing the full 7500 through at the moment.
 

dalema

Well-Known Member
Joined
Jul 7, 2019
Threads
13
Messages
737
Reaction score
719
Location
Bay Area
Vehicle(s)
JL392, Golf GTI
Take this with a grain of salt since I have not personally closed a lease on a 4xe yet, but my dealer tells me yes and I have seen multiple people post online that they have also gotten confirmation. So it sounds like both Chrysler Capital and Ally are passing the full 7500 through at the moment.
live heard someone say Ally is but am looking for confirmation for CCAP. on the edmunds forum they had noted they don’t - hence the question.
 

Jocko

Well-Known Member
Joined
May 25, 2018
Threads
4
Messages
433
Reaction score
477
Location
Boston
Vehicle(s)
Hydro Blue 4xe Rubicon
Hmm I'll chime in if I get more specific confirmation on Chrysler Capital.
 

dalema

Well-Known Member
Joined
Jul 7, 2019
Threads
13
Messages
737
Reaction score
719
Location
Bay Area
Vehicle(s)
JL392, Golf GTI
Oh - also on the edmunds forum they noted that CCAP is waiving the acquisition cost for leases. Only on the hybrids. Good one to check for if anyone is leasing.
 

GeneralKlinger

Active Member
First Name
BJ
Joined
Mar 16, 2019
Threads
0
Messages
34
Reaction score
17
Location
Medford, NJ
Vehicle(s)
2020 Toyota Rav4 Hybrid XSE
So if make over 130,000 a year and get taxes taken out because I am a teacher, I will be fine. Correct
Where does a Teacher make over $130K a year? My sister in law is an Art teacher for a High school and makes around $65K.
Sponsored

 
 



Top