Greg Miller Posted July 8, 2014 at 08:12 PM Report Share Posted July 8, 2014 at 08:12 PM Many of us who bought this wonderful car are seniors. I, for one, cannot get my $4,007 rebate because my tax liability does not hit the threshold. Is anyone working on this problem. I've called AARP and they gave me a few addresses. Anyone interested in taking up this fight. The money sure would be nice. Quote Link to comment Share on other sites More sharing options...
blars Posted July 8, 2014 at 08:57 PM Report Share Posted July 8, 2014 at 08:57 PM This tax credit is a non-refundable tax credit, which means that you are not eligible for reimbursement beyond your tax liability. It's just the nature of this particular tax credit. More power to you if you want to fight it, however, I think you're going to have one hell of an uphill battle as it's described pretty plainly on the IRS's website: http://www.irs.gov/publications/p17/ch37.html#en_US_2013_publink1000174905 jeff_h 1 Quote Link to comment Share on other sites More sharing options...
Russael Posted July 8, 2014 at 10:15 PM Report Share Posted July 8, 2014 at 10:15 PM (edited) About the only way around it would've been to lease the vehicle, as they include that credit as a lease incentive. I would've had the same problem if I had taken the plunge for a Ford Focus Electric which is a 7500 credit. In order to claim that credit, I would've had to lease it and then buy it out once the lease was up. You may not be able to claim the entire credit, but that doesn't mean you're not going to get anything at all - If your liability is 4007 or less, you basically will have all of your federal refunded when you do your 2014 taxes, but that does mean any credit you were unable to claim is lost. Edited July 8, 2014 at 10:17 PM by Russael Quote Link to comment Share on other sites More sharing options...
JATR4 Posted July 9, 2014 at 01:15 AM Report Share Posted July 9, 2014 at 01:15 AM Many of us who bought this wonderful car are seniors. I, for one, cannot get my $4,007 rebate because my tax liability does not hit the threshold. Is anyone working on this problem. I've called AARP and they gave me a few addresses. Anyone interested in taking up this fight. The money sure would be nice.Not sure your exact age or financial status. One way to still benefit from the credit--if you purchased the car in 2014--is to take extra money from an IRA/401k to increase your tax liability. Takes some figuring to determine if you will come out ahead. Also, increases in taxable income can increase the amount of social security that is taxable. And the credit has no effect on state taxable income. We did exactly that with my wife's IRA. Quote Link to comment Share on other sites More sharing options...
Russael Posted July 9, 2014 at 12:06 PM Report Share Posted July 9, 2014 at 12:06 PM Smart... I didn't even consider withdrawing from a retirement fund to increase tax liability. With me being significantly under retirement age, those considerations don't cross my mind. I always think about the penalties... and the fact that I am diving in to my retirement livelihood. Quote Link to comment Share on other sites More sharing options...
dnorris78 Posted July 9, 2014 at 09:12 PM Report Share Posted July 9, 2014 at 09:12 PM Since I work a full time job I recalculated my withholding (a reduction) to increase my tax liability. Next month I will do the calculations again to make sure I am on target. Beginning 2015 I will readjust my wtholdings appropriately. Quote Link to comment Share on other sites More sharing options...
JATR4 Posted July 9, 2014 at 10:42 PM Report Share Posted July 9, 2014 at 10:42 PM (edited) Since I work a full time job I recalculated my withholding (a reduction) to increase my tax liability. Next month I will do the calculations again to make sure I am on target. Beginning 2015 I will readjust my wtholdings appropriately.Withholding has nothing to do with tax liability. Withholding just determines whether you owe or get money back. You probably know that. I adjusted my withholding so I owed just a small amount at the end of the year. Probably what you are doing. Edited July 9, 2014 at 10:46 PM by JATR4 Quote Link to comment Share on other sites More sharing options...
Doug0716 Posted July 9, 2014 at 10:59 PM Report Share Posted July 9, 2014 at 10:59 PM Not sure your exact age or financial status. One way to still benefit from the credit--if you purchased the car in 2014--is to take extra money from an IRA/401k to increase your tax liability. Takes some figuring to determine if you will come out ahead. Also, increases in taxable income can increase the amount of social security that is taxable. And the credit has no effect on state taxable income. We did exactly that with my wife's IRA.An interesting tacting. Doesn't really apply to me, but I had a thought that may be worth looking into. Some 401K plans won't penalize you if you put the money back in within X days. If you withdraw from your 401K at the end of the year, take the "tax liability" hit, then after the new year year re-deposit the money as a 2015 contribution and get the tax benefit then you may be able to come out ahead? Quote Link to comment Share on other sites More sharing options...
JATR4 Posted July 10, 2014 at 12:08 AM Report Share Posted July 10, 2014 at 12:08 AM (edited) An interesting tacting. Doesn't really apply to me, but I had a thought that may be worth looking into. Some 401K plans won't penalize you if you put the money back in within X days. If you withdraw from your 401K at the end of the year, take the "tax liability" hit, then after the new year year re-deposit the money as a 2015 contribution and get the tax benefit then you may be able to come out ahead?I believe that would be illegal. Wouldn't be something I would consider. Re-deposit would not be a contribution. And you might end up paying taxes on that amount twice. You really don't want to do that! Edited July 10, 2014 at 12:23 AM by JATR4 Quote Link to comment Share on other sites More sharing options...
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