If I purchase an electric vehicle with the 7500 tax credit, how do I ensure that I will owe enough at the end of the year to see that full credit when I do my taxes?

[Muthu-Subramanian]

@Texas Roger also i am filing MFJ with 2 kids and not single..

[Muthu-Subramanian]

IS there an updated Schedule 8812 form for 2018? Additional Child Tax credit

[Texas Roger]

The situation hasn't changed from your comment that you posted 5 days ago stating that you need $113,186 of adjusted gross income to have $89,186 taxable income and thus $11,500 tax liability when filing MFJ and using the $24,000 standard deduction. If you only have $90,000 of adjusted gross income, you need another $23,186 of income to get to $113,186.

I have been using MFJ filing status with $24,000 standard deduction and 2 children under the age of 17 in all my calculations (except my first answer). Go to the 2018 tax tables and find $11,500 tax in the MFJ column. See the amount of taxable income for that amount of tax and add $24,000 of standard deduction to arrive at the amount of Adjusted Gross Income you need to have $11,500 of tax liability before credits.

Not sure why you are asking about Additional Child Tax credit. If you have enough tax liability to get $2000 of child tax credit for each of your 2 children, you do not qualify to get any "additional child tax credit". Additional child tax credit is only for tax filers who do not have enough tax liability to get the full $2000 of child tax credit for each child. Here is the link to the 2018 Schedule 8812: <a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/f1040s8.pdf">https://www.irs.gov/pub/irs-pdf/f1040s8.pdf</a>

Are you sure that the EV car you bought is eligible for the full $7500 of credit? Not all cars are eligible for that much credit. Here is a source for amount of credit by model. I'm not sure how accurate it is: <a rel="nofollow" target="_blank" href="https://www.fueleconomy.gov/feg/taxevb.shtml">https://www.fueleconomy.gov/feg/taxevb.shtml</a>

[Muthu-Subramanian]

@Texas Roger completely got it, now i am clear on that portion. now consider i have 6.8K federal withheld, i should be getting back 11.5K,right? yes, i am sure my car qualifies for 7.5K.

[Texas Roger]

If you have enough income to have an $11,500 tax liability, the combined credits for the 2 children and the EV would offset the $11,500 of tax liability and you would get a refund of all of your $6,800 of withholding. Even if you don't have enough income to have a $11,500 tax liability, the combined credits would be enough to offset all of your tax liability and you would still get a refund of all of your $6,800 of withholding. You don't get a refund from any unused credit amounts.

[Muthu-Subramanian]

@Texas Roger i understand that i will get my 6.8K back from withholding, how much more will i get back?if i have 11.5k liability?

[Texas Roger]

You will not get any more back. Your credits for the children and the EV will pay the tax liability.

[krystle-richman]

@Texas Roger If I am a single filer earning with a 2017 AGI of 67797 and I anticipate it to be nearly 75000 in 2018, would I qualify for a full 7500 tax credit?

[krystle-richman]

@Texas Roger If I am a single filer earning with a 2017 AGI of 67797 and I anticipate it to be nearly 75000 in 2018, would I qualify for a full 7500 tax credit?

[Texas Roger]

If you claim the $12,000 standard deduction on $75,000 of AGI, then your taxable income would be $63,000. If the income was all ordinary income (no qualified dividends or long term capital gains), your tax liability would be about $9800. If you had no higher priority credits, you would have enough tax liability to more than offset and qualify for $7500 of electric vehicle credit.

[sonyiavillegas]

@Texas Roger If I’m a single filer earning $60K, after standard deduction, taxable income $48K. Tax liability only $6505. Before adding EV credit, my tax rebate is around $1650 but after adding EV credit $7500, I only get partial EV credit and a total of $7,350 tax rebate. Does that sound about correct? Thanks for any help.

[Texas Roger]

If you tax liability is $6505 and you have no other non refundable credits, you EV credit should be $6505. When you say a total of $7350 tax rebate do you mean tax refund? The EV credit of $6505 should have offset your tax liability and you should receive all your federal withholding as a refund.

[tcmeyers]

When we purchased solar panels, I pretty sure the tax credit was applied several years in a row until the credit was used up, the amount each year limited by our tax liability for the year. Is the EV tax credit like this, where it will carry over to the next year if you can’t “use” all $7500 of it?

[SweetieJean]

Sorry, but the EV Tax Credit is nonrefundable... use it or lose it!

[bscott7]

This statement was very helpful "you need $113,186 of adjusted gross income to have $89,186 taxable income and thus $11,500 tax liability when filing MFJ and using the $24,000 standard deduction" for 2 kids. What would the adjusted gross income need to be for 3 kids to have $13,500 of tax liability?