Can I adjust my withholding to realize the 7500$ plug in hybrid credit? I want to buy a new car but only if I can get the 7500 back by either lowering tax paid or refund.
I usually receive a refund due to having children, paying for daycare, student loan, wife in college full time, etc. If I can adjust my taxes being withheld to a minimum amount, would I be able to justify the additional cost of the plug in and how?
Your withholding doesn't change the tax liability. You need to look at your tax return and see how much TAX is on Line 44 of your 1040. That's what can be offset by the electric vehicle credit.
Thank you, I understand that part. I am determining if I can adjust my tax withholding to 0$ being withheld from my paycheck if my Tax liability on line 44 is over 7500. That way I am not paying the tax money out of my paycheck and can actualize the credit in money in my pocket.
