garygid
Well-known member
Having dependent childern would reduce your tax liability, so it WOULD matter.
Desertstraw said:Isn't it ironic that if you have children, it increases the cost to you of a Nissan Leaf? Your lower income tax because of your children reduces your tax credit.
A tax credit or rebate costs the government the same amount of money. If you want to promote sales, you to make something affordable to those who can't afford it. A rebate does not do this.
No what I mean is you don't pay more in taxes. Even with children you get more back but you did not pay more. right?garygid said:Having dependent childern would reduce your tax liability, so it WOULD matter.
garygid said:Some are confusing paying and owing taxes with your tax liability.
Depending upon your income, interest, dividends, deductions, dependents, and a few other "small" factors, you calculate a tax liability on your tax forms.
This "liability" amount is what you would owe for the tax year if you had not made any "tax payments". However most of us do make "payments" during the year, typically payroll withholding or estimated tax paynents.
So, with our filing of the tax forms, we send in more if we have not paid enough, or ask for a refund if we have decided to be generous and gave the government more than we needed to give.
So, if your liability is $6000 and you "paid" $502 monthly (in payroll deductions), you would have paid $6024, and be due a $24 refund. With the LEAF tax credit, you would get an additional $6000 back.
With a "liability" of $10,000 you might have paid $1000 per month, and be due a $2000 refund. With the LEAF tax credit, you would get an additional $7500 back, "refunding" some of the taxes you owed (and already paid).
With a $3000 tax liability and only $1000 in payments, you would still owe $2000 in taxes. But, the LEAF tax credit for you would equal your tax liability ($3000), and it would pay the $2000 you owe, and you would get a $1000 refund (the tax that you already paid).
leaffan said:garygid said:Some are confusing paying and owing taxes with your tax liability.
Depending upon your income, interest, dividends, deductions, dependents, and a few other "small" factors, you calculate a tax liability on your tax forms.
This "liability" amount is what you would owe for the tax year if you had not made any "tax payments". However most of us do make "payments" during the year, typically payroll withholding or estimated tax paynents.
So, with our filing of the tax forms, we send in more if we have not paid enough, or ask for a refund if we have decided to be generous and gave the government more than we needed to give.
So, if your liability is $6000 and you "paid" $502 monthly (in payroll deductions), you would have paid $6024, and be due a $24 refund. With the LEAF tax credit, you would get an additional $6000 back.
With a "liability" of $10,000 you might have paid $1000 per month, and be due a $2000 refund. With the LEAF tax credit, you would get an additional $7500 back, "refunding" some of the taxes you owed (and already paid).
With a $3000 tax liability and only $1000 in payments, you would still owe $2000 in taxes. But, the LEAF tax credit for you would equal your tax liability ($3000), and it would pay the $2000 you owe, and you would get a $1000 refund (the tax that you already paid).
Someone here made it very simple. He said just look at line 60 on your 1040 tax form. I can't remember what line for 1040A.
Are you referring to S.3442: Electric Vehicle Deployment Act of 2010? If so, it doesn't change the tax credit to a rebate, but it does make it "refundable". i.e. you could get the money back at income tax time even if it was more than the taxes you paid.evnow said:Here is a suggestion. Call your representatives and ask them to change the tax credit to a rebate.
That is what the new Senate bill does - though I don't know whether that has made it to the energy bill on the floor.
Desertstraw said:Isn't it ironic that if you have children, it increases the cost to you of a Nissan Leaf? Your lower income tax because of your children reduces your tax credit.
A tax credit or rebate costs the government the same amount of money. If you want to promote sales, you to make something affordable to those who can't afford it. A rebate does not do this.
planet4ever said:Are you referring to S.3442: Electric Vehicle Deployment Act of 2010?
I really feel for you, Desertstraw. It's difficult to connect the dots when all the dots aren't on the table.Desertstraw said:Isn't it ironic that if you have children, it increases the cost to you of a Nissan Leaf? Your lower income tax because of your children reduces your tax credit.
A tax credit or rebate costs the government the same amount of money. If you want to promote sales, you to make something affordable to those who can't afford it. A rebate does not do this.
Because the government uses various rules, changes, and adjustments to promote behaviors they want to promote, and because different people can choose whether to participate in or opt-out of any/all of those behaviors, there is no 'single' tax liability that fits all.The legal right of a taxpayer to decrease the amount of what would otherwise by his taxes, or altogether avoid them, by means which the law permits, cannot be doubted.
U.S. Suprems Court (Gregory v. Helvering, 293 U.S. 465)
I hate trying to figure out how this is all going to impact my taxes and deductions! Especially without knowing when I'll actually take possession!smkettner said:In the mean time I need to defer deductions to pay more tax in 2010
Ya solar that I just got roles over but they want us to buy electric cars and do not do the same? a shamesmkettner said:Easiest for most is to prepay the mortgage one month and property taxes second installment one year and not the next to spike your tax liability. Timing of business deductions may also help. Ask your tax advisor if you are not able to easily get the full $7500. It might pay to take possession Jan 1st if you need to prepay stuff in 2010 to spike your taxes in 2011.
I am surprized any unused tax credit would not roll to the next year if not fully utilized. All the talk is that it applies only to the year of purchase.
smkettner said:Easiest for most is to prepay the mortgage one month and property taxes second installment one year and not the next to spike your tax liability. Timing of business deductions may also help. Ask your tax advisor if you are not able to easily get the full $7500. It might pay to take possession Jan 1st if you need to prepay stuff in 2010 to spike your taxes in 2011.
I am surprized any unused tax credit would not roll to the next year if not fully utilized. All the talk is that it applies only to the year of purchase.
Dav said:Especially without knowing when I'll actually take possession!
Enter your email address to join: