topic TY, TGB! in After you file

If I have a total federal tax deduction of $7000 on my w2 form and I have an electric car tax credit of $7500. Do I get refunded $7000 when i file my taxes?

jessicadurette — Sat, 01 Jun 2019 00:53:08 GMT

Do you mean you had $7000 Federal taxes withheld from you...

SweetieJean — Sat, 01 Jun 2019 00:53:09 GMT

Do you mean you had $7000 Federal taxes withheld from your pay? The amount you get back (if any) depends upon your tax liability once your return has been prepared

The $7500 credit is treated as described here:

https://ttlc.intuit.com/questions/2565264-how-does-the-electric-car-tax-work-will-i-get-a-refund-if-...

I am still a bit confused. Do most people have to "pay B...

jessicadurette — Sat, 01 Jun 2019 00:53:10 GMT

I am still a bit confused. Do most people have to "pay Back" money for taxes. I thought most people got tax returns? Is this 7500 credit only applicable to those who "pay back." after they filed their taxes? Or does this cover those who had money withheld from their pay? Thank you!

About 75% of taxpayers get a refund. The rest break even,...

SweetieJean — Sat, 01 Jun 2019 00:53:12 GMT

About 75% of taxpayers get a refund. The rest break even, or owe taxes at tax time.

http://www.taxpolicycenter.org/briefing-book/what-difference-between-refundable-and-nonrefundable-credits">http://www.taxpolicycenter.org/briefing-book/what-difference-between-refundable-and-nonrefundable-credits</a>

The electric car credit offsets the TOTAL amount of tax (...

TaxGuyBill — Sat, 01 Jun 2019 00:53:14 GMT

The electric car credit offsets the TOTAL amount of tax (Line 47 of 1040).  Your withheld tax on your W-2 does not affect that at all.

The tax return calculates the TOTAL amount of income tax (Line 47 of Form 1040), not counting the taxes withheld from your paychecks (and other payments).  From that amount, it makes some adjustments for credits and other taxes, then subtracts the amount of taxes withheld from your paychecks (and other payments) to determine if you get a refund or if you owe on your tax return.  The Electric Car Credit is based on the first amount (before the adjustments and withholding), not the last amount (after the adjustments and withholding).

If Line 47 of your Form 1040 is at least $7500, you will get the full benefit of the Electric Car Credit, and your refund would increase $7500.  Your refund or amount owed (before the Electric Car Credit) does not affect that.

TY, TGB!

SweetieJean — Sat, 01 Jun 2019 00:53:16 GMT

TY, TGB!

As an aside, if you get a refund every year, you are havi...

SweetieJean — Sat, 01 Jun 2019 00:53:18 GMT

As an aside, if you get a refund every year, you are having too much withheld from your paycheck. Why give the IRS an interest-free loan?

Re: If I have a total federal tax deduction of $7000 on my w2 form and I have an electric car tax credit of $7500. Do I get refunded $7000 when i file my taxes?

DARRELL — Fri, 24 Jan 2020 22:10:51 GMT

What will I get back no depends