I decided it was time to replace my aging '05 Nissan and buy a new 2023 Electric Vehicle.
I am retired and receive income from Social Security and a meager small pension.
For the past seven years, with such a low AGI, I typically owe zero Federal and less than $200.00 in Oregon state income taxes.
This would be exactly the same this year, if I had not purchased my new qualifying vehicle in November 2023, taking advantage of the $7,500 IRS EV tax credit.
To make the purchase, I withdrew $27,500 from my IRA Account and financed the remainder.
Using Form 8936 Clean Vehicle Credit, TurboTax correctly accounted for the $5,606.00 in additional Federal taxes from my IRA withdrawal, reducing my Federal Tax Burden to zero.
However, TurboTax is now calculating my Oregon state income taxes at a staggering $2,472.00! A much higher income level, as well as assessing a severe underpayment PENALTY with INTEREST and creating $661.00 QUARTERLY state vouchers for the 2024 taxable year...WHY???
Either something is seriously WRONG with how TurboTax is calculating this, or the EV Tax Credit is a huge government SCAM.
Any ideas?
