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Level 1

How much my salary should be to get full $7500 electric car tax credit. I file married and have 2 dependent.

How much my salary should be to get full $7500 electric car tax credit. I file married and have 2 dependent. I am planing to but Pacifica but I want to make sure I will get full benefit of $7500 

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Level 18

How much my salary should be to get full $7500 electric car tax credit. I file married and have 2 dependent.

For 2018 taxes

1) Assuming your 2 dependents qualify you for the full child tax credits:

2)  Assuming you are using just the new  24,000 standard Deduction (not itemizing)

3) Assuming both parents have only W-2 income, (no self-employment income)

Total W-2 salary for both parents + interest, no capital gains to declare:

~$60,000  or less = no taxes...cannot use the $7,500 credit

~80,000 = ~$2,300 taxes to use against the $7,500 credit

~100,000 = ~$4,700 taxes to use against the $7,500 credit

~113,000 = ~$7,500 taxes to use against the $7,500 credit

16 Replies
Level 11

How much my salary should be to get full $7500 electric car tax credit. I file married and have 2 dependent.

Your state may have something as well.
Level 18

How much my salary should be to get full $7500 electric car tax credit. I file married and have 2 dependent.

For 2018 taxes

1) Assuming your 2 dependents qualify you for the full child tax credits:

2)  Assuming you are using just the new  24,000 standard Deduction (not itemizing)

3) Assuming both parents have only W-2 income, (no self-employment income)

Total W-2 salary for both parents + interest, no capital gains to declare:

~$60,000  or less = no taxes...cannot use the $7,500 credit

~80,000 = ~$2,300 taxes to use against the $7,500 credit

~100,000 = ~$4,700 taxes to use against the $7,500 credit

~113,000 = ~$7,500 taxes to use against the $7,500 credit

Level 11

How much my salary should be to get full $7500 electric car tax credit. I file married and have 2 dependent.

CORRECTED:

Adjusted gross income = $113,000
Standard/Itemized deductions  - $24,000
Taxable income = $89,000
Child Tax credits = $4,000
Estimated tax liability = $7,459
Level 18

How much my salary should be to get full $7500 electric car tax credit. I file married and have 2 dependent.

I get $4000 credit for the children  if they qualify for 2018...
Level 11

How much my salary should be to get full $7500 electric car tax credit. I file married and have 2 dependent.

Level 11

How much my salary should be to get full $7500 electric car tax credit. I file married and have 2 dependent.

@SteamTrain  You are correct. The tool I used was wrong!
Level 1

How much my salary should be to get full $7500 electric car tax credit. I file married and have 2 dependent.

Yes I qualify for $4000 child credit. So the cutoff is ard $113000 to get full $7500?
Level 18

How much my salary should be to get full $7500 electric car tax credit. I file married and have 2 dependent.

Given the rough assumptions I've made above...along with all being US citizens .
Level 18

How much my salary should be to get full $7500 electric car tax credit. I file married and have 2 dependent.

If your total income will be too low, it is an opportunity to convert any traditional IRA you own to a ROTH IRA to increase your taxable income amount.....but it gets messy if your traditional IRA contains some non-deductible basis from prior year contributions.