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.
Yes you can.... increase your withholding allowances on your W-4 to 10.
Just be aware of underwitholding your state taxes, as they may not have a similar tax credit.
Thank you all! I live in Texas so we have no state taxes!