- Mark as New
- Bookmark
- Subscribe
- Subscribe to RSS Feed
- Permalink
- Report Inappropriate Content
Deductions & credits
We had the same problem as you. Kept calculating as $0. Then after researching and asking questions on the forums, I believe the answer is this. As simple as I can understand it.
- This is not a cash credit, you will not receive any money back on this - no matter what. It's a credit against what you owe (if you owe anything)
- If you receive any money back on your taxes, you are not eligible for the credit. It will calculate as $0. For example, if your tax return says you will receive $2000 - you won't get the credit. Another example, if your tax returns says you only get $5 back - you still won't get the credit.
- You get this credit only if you OWE money to the IRS (and you are not getting any money back). So if you owe $500 to the IRS, then the credit will kick in, and you'll get a reduction in what you owe. In my case, our tax credit would have been $300 from what I paid for in installation and the charger cost. If I owed $500 to the IRS, it would have reduced it by $300, and I would then only have to pay $200. Now lets say I owed only $5 to the IRS, and my EV credit was $300. It would only cover that $5 owed down to $0 - and I would not get the remaining $295.
This is at least how we understood it when we worked out our taxes on this. I hope this is a bit more helpful. I am NOT a Tax Expert, just a laymen trying to figure this out.
And to any Tax Experts reading this, if I'm completely wrong, please let me know.