And if you overpaid by 7500 but had more than 7500 in tax liability, it would double your refund.
Right, so anyone buying a Cybertruck will have much more than $7500 in tax liability, because no one is going to spend nearly a year's salary on a vehicle.This is from the IRS forms themselves.
So, if you file Single or Married filing separate, you need $54,000 plus of TAXABLE income to realize the full $7,500 credit. Married filing jointly requires at least $65,950 of TAXABLE income.
So if you are a family with $65,900 of TAXABLE income, and you bought an MY, then your taxes for the year would be ZERO, and you would receive a refund for everything you gave the feds. If you were single, and you made $54,000 of TAXABLE income, you would owe $3.00 and everything over and above that is coming back to you in a refund. If you were single, and your TAXABLE income was $66,000, you would normally owe $10,132 in taxes for the year. But with a MY purchase, you would only owe $2632.00, and would get a refund for everything you paid over that amount.
Now if you file married filing joint, and your taxable income was $54,000, your liability would be $6,072.00. If you bought a MY, then your taxes go down to ZERO, and you get back everything you paid. HOWEVER, you didn't get a $7,500 credit, you only got a $6,072 credit. It can't go below nothing.
Please remember that your line 15 taxable income is comprised of 2 basic numbers. How much you made, minus how much you can deduct. (AMT is another discussion). So if you made as a couple $80,000, but you have $26,000 in deductions (I'm just throwing numbers, not looking for whether or not that is possible or prudent) then your line 15 taxable income is $54,000, and you can see what the credit is worth to you in the paragraph above.
Is that clear to anyone else besides me? No, I haven't thought about all the different scenarios that could arise, or whether or not you should be buying any car at any price based on where you fall in taxable income. Nor is this financial or tax advice of any kind. Just trying to communicate how the credit works, and I haven't even finished my coffee yet this morning, so errors might have occurred.
Propeller? Only one motor? Are you nuts??? The CT True-Performance version will have dual surface drives! I have it on good authority from a guy who identifies as a Tesla engineering insider who said on the interwebs that this is a spy photo of the CT undergoing sea trials, and that Elon himself is at the helm here!
Hmm... I'm not sure I will ever receive a better response to a post in a place that looks and feels like the future.Propeller? Only one motor? Are you nuts??? The CT True-Performance version will have dual surface drives! I have it on good authority from a guy who identifies as a Tesla engineering insider who said on the interwebs that this is a spy photo of the CT undergoing sea trials, and that Elon himself is at the helm here!
