I am eligible for the $7,500 electrical vehicle credit but I won’t owe $7,500 in federal taxes. I’m considering taking a withdrawal from my 401k since I’ll have extra credits available to me. If I take $10,000 (counted as income I understand) will the $1,000 tax penalty that results be deductible or do I owe that no matter what?
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Sorry ... but the EV credit can ONLY be used against federal income taxes ... it cannot be used against the 10% penalty.
Look at the form 1040 ... the EV credit is used on line 54 and the 10% penalty is all the way down on line 59.
Sorry ... but the EV credit can ONLY be used against federal income taxes ... it cannot be used against the 10% penalty.
Look at the form 1040 ... the EV credit is used on line 54 and the 10% penalty is all the way down on line 59.
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