Hi, Every expert:
Whatever how do I fill the form, my brand new Tesla's $7500 Credit only shows on Business spend but it does show on Federal Credit refund.
I do family joint on my desktop. I got my Tax Due after I followed the expert Joann let me do separate with my wife. I purchased Turbo Tax to get a Tax Refund. Joann makes me feel like she is an agent of the IRS!
Who can help me get my Tesla $7500 shown on the Federal Refund?
Thank You!
If your Tesla credit relates to your business, you need to report at least that much in business income in order to receive the business credit. Instead, your screenshot shows close to an $18K loss.
Thank you for your reply.
Tesla Purchased $41962.
Start Uber from Sep, 28 to Dec. 31 in 2023. Earning $15959.
41962 - 15959 = 26003
So, I can get that $7500 if I earned the difference of $26003?
No. You needed a profit of $7500 from your business and the Tesla would have wiped out that profit.
Your business shows that not only did you not make money you lost almost 16000 dollars.
The numbers that you are typing and the ones that are on your tax return do not match.
It might be a good idea to hire someone to help you do your taxes this year. It's your first year with a business and that can be tricky. You can hire someone through TurboTax or a local professional but you should get another set of eyes on your return.
Thank you for your advice!
I adjusted the Profit but Tesla's $7500 still does not show on the Federal Refund.
Where do I need to deal?
If your only income is self-employment income, you won't receive a credit for your Tesla. This is because your profit does not exceed your standard deduction for the year thus there is no tax liability. A Tesla credit is a non-refundable credit meaning that if there is tax liability then that credit will help reduce the tax liability to zero. If it is already zero, then the credit cnnot be used.
To verify, go to the forms mode in your program and look at the 1040. look at line 16 on the 1040. if there is a zero there or line 24, then the credit cannot be used
Thank you for giving the clues.
I asked Telsa Salesman for the qualified $7500 back for doing Uber before I paid. They said "Yes". I never expected I would not have it back because I’m self-employed. All Uber drivers are self-employed. So, nobody can get it back with the same situation?
Almost the Deadline, I so regret purchasing the brand new Tesla now!!!!
How much to hire an expert to help me deal with my Tesla $7500 credit refund?
If you would like to have an expert prepare and file your tax return, please see this link for more details on how to utilize TurboTax Live Full Service.
If you want to have an Expert review your return, TurboTax Live is available but is only available if you are using the online version of TurboTax. Please see this link for additional information on this option.
If you want to pursue this further and think you can get any credit, file Form 4868 request extension of time.
any final tax due will be due and payable April 15,
Thank you for the reply.
Where can I get the form 4868?
For the Desktop program, type extend in the search and click on the Jump to link. Or go to Other Tax Situations----then scroll down to Other Tax Forms---File an Extension
Extensions form your computer must be printed and mailed.
Or use the online "Easy Extension".
I follow to find the line, only zero shows on 16, but some shows on Line 24.
How do I adjust it?
You don't owe any regular income tax on your income on lines 16 and 22. BUT you owe self employment tax on line 23 & 24. You can't reduce the self employment tax with any credits. You can only reduce regular income tax.
From your screenshot, it appears that your tax on Line 24 is from self-employment tax, not income tax.
Nonrefundable credits such as the Clean Vehicle Credit can only be applied to income tax. The self-employment tax (what you pay instead of Social Security withholding as a self-employed person) is added to your return after any credits are deducted from income tax.
Thank you for your reply.
Which one form and line Can I learn the tax percentage of my income tax and self-employment tax?
You pay Self Employment tax (Scheduled SE) on a Net Profit of $400 or more on Schedule C in addition to regular income tax on it. You pay 15.3% SE tax on 92.35% of your Net Profit (If it is greater than $400). The 15.3% self employed SE Tax is to pay both the employer part and employee part of Social Security and Medicare. So you get social security credit for it when you retire.
You are paying 15.3% for……
SS for employer 6.2% (up to 160,200 wages & profit)
SS for employee 6.2% (up to 160,200 wages & profit)
Medicare for employer 1.45% (on all wages & profit, no max)
Medicare for employee 1.45% (on all wages & profit, no max)
My Gross Income is $65,462. Net Income is 13,728.
I try to understand it is because I paid $41,692 to purchase a Tesla, but I use my Tesla Uber only earned 31,838, which is a loss of $9854 on Uber. Is the reason my Income Tax is 0? How much it will be if the Net Income is positive? How to calculate the percentage of the rate?
My Self-Employement is $1940. So, the percentage rate is 1940 ÷ 65,462 = 0.029 ≈ 0.03. My self-employment Tax rate is 3%. Or, 1940 ÷ 13728 = 0.141≈0.14 it is 14%?
I don't know what that screenshot is from. This first year you probably should go to a local accountant or tax place in person to ask questions and they can explain it to you.
Your net income is too low to have any personal income tax. The self employment tax is the Net Profit 13,728 x .9235 = 12,678. Then 12,678 x .153 = $1,940 self employment tax.
I don't understand what you are saying about the Tesla only earned 31,838? How many businesses do you have? Isn't it all on one Schedule C?
The screenshot comes from My Turbotax Desktop.
The reason why I purchased TurboTax is because I want, I need to learn how to do Tax by myself. That is why I rather suffer lots of pain from it.
Thank you for your valuable time!
Sorry I know it's from your Turbo Tax Desktop. But what page? You needed to include more of the screen to show what you are looking at.
To better understand the source of your self-employment tax and why you had no income tax, I suggest you review the Schedule C's that TurboTax prepared from your entries regarding your businesses. Are you arriving at an assumed net loss on the Uber activity by deducting the cost of the Tesla purchase from your gross receipts? Do you have three Schedule C activities?
As @VolvoGirl noted, the self-employment tax on your return is based on the net profit shown in the second column of your screenshot.
See this TurboTax tips article and this one for more information about Schedule C.