*IF* your 'tax' liability on the tax line for 2018 form 1040 is greater than $7500 (equivalent to line 44 on the 2017 1040), then you won't get all your line 64 + 65 withholding back.ġ) Not all electric vehicles qualify for the full $7500.make sure you find out what $$$ your purchase qualifies for.Ģ) Watch out.Ours has 7 rounds of logs added clockwise, but yours can be any number of rounds.

*IF* your 'tax' liability on the tax line for 2018 form 1040 (equivalent to line 44 on the 2017 1040.but the line numbers are going to change drastically).if the tax liability on that line is less or equal to the $7500, then you will get all your withholding back (yes, line 64, but also line 65).(also assumes you do not have any self-employment income.or any of the items on the current 1040 lines 57-thru-62 because the credit won't offset those) Now, what SJ was saying was that if you can project your approximate tax assessment for 2017.and if you find that you are in situations #1 or #2.then it is an opportunity to convert some of a Traditional IRA to a ROTH IRA, such that the credit is used against what you would normally have to pay taxes for the conversion.and still get all your withholding back.but to do that, you need to have a really good idea of your total situation for 2017 (if buying in 2017) or 2018 if you are waiting until next year All of the $7500 vehicle credit is used first to pay off that, with $1000 remaining to be taken out of your withholding.and you get a refund of whatever withholding that wasn't used up.

Again, your get all your withholding back, because the credit was used and took care of all your assessed tax.ģ) The assessed tax is (perhaps) 8500 for your situation. Then $5,000 of the vehicle credit is used up to take that assessed tax to zero, and you lose the remaining 2,500. The Vehicle credit can't be used.but since you also had withholding, you will get all your withholding back.but no more.Ģ) The assessed tax is (perhaps ) $5000 for your situation. Normally, your Monthly withholding is then used as a credit against that assessed tax.but when the vehicle credit is available, that credit will be used first to attempt to reduce the final tax result to zero.but no lower than zero.ġ) Maybe at tax time, your assessed tax is already zero (withholding hasn't been considered yet) because you have so many deductions, and so little income. Your monthly paycheck withholding is ignored until that calculation is done. The way tax returns work is that, at tax time, you put in all your income, and all your deductions and exemptions, and then a total tax is assessed against what remains. (Tax owed BEFORE taking any withholding, or other prepayments, into consideration) No. depends on the assessed tax on your tax return.

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