EV Tax Credit and 2022 F150 Lightning

[Regular150]

So Lightnings are getting delivered, and we're eventually going to be asking each other EV Tax Credit Q&As.

A few of us have gone through the process with various EVs, and many us did it with the MachE.

I know this is a sister site so I figured I would post a link to the MachE EV Tax credit thread. Pretty informative and many examples that will apply to us Lightning Order and reservation holders.

https://www.macheforum.com/site/thr...le-of-the-7-500-tax-credit.12896/#post-313191

Even when Ford Hits 200,000 phase out, another full year after that quarter is eligible for a portion of the credit.

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[Roy2001]

To simplify the thread, check form 1040 how much did you pay for Federal tax. If you pay less than $7500, you will get the amount you paid. If you pay >=$7500, you get $7500.

 

[Carminus]

(removed possibly incorrect info) on your 1040 tax return. If its $7500 or more you should get the full amount.

Edit see my updated post below.

 

[vandy1981]

Like 16 says $40k, I assume I'm ok?

My line 16 says $100K, am I OK?

 

[greenne]

Oh geezus..here we go again....

 

[greenne]

To simplify the thread, check form 1040 how much did you pay for Federal tax. If you pay less than $7500, you will get the amount you paid. If you pay >=$7500, you get $7500.

How much you pay in tax is not relevant.. it's your tax liability(how much you owe in taxes) after all the applicable deductions and non refundable(or non rollover) credits.

 

[greenne]

Look at line 16 on your 1040 tax return. If its $7500 or more you should get the full amount.

This is incorrect. Line 16 is your initial tax liability..it does NOT factor in any credits you may have that *could" lower your actual tax. You should instead look at line 24.

However, I say this as a courtesy and does not constitute advice. If unsure please consult a tax professional, tax attorney or CPA.

 

[greenne]

What line is that? I need to tell H&R Block.

Why aren't they telling you that?

 

[Roy2001]

How much you pay in tax is not relevant.. it's your tax liability(how much you owe in taxes) after all the applicable deductions and non refundable(or non rollover) credits.

Forget about tax withhold. You are talking about that.

It is the total amount you need to pay! Not the amount withhold by your employer!

 

[Roy2001]

So it's not line 16? I'm switching to turbo tax next year.

I have not checked turbo tax yet. But say your family earn 100k/yr, you need to pay $20k federal tax per year. Your payroll withheld $16k, so you need to send IRS $4k when you report your tax.

Now due to $7500 tax credit, you don't need to pay $4k, and you will get $3500 back from IRS.

 

[greenne]

Forget about tax withhold. You are talking about that.

It is the total amount you need to pay! Not the amount withhold by your employer!

No I'm not...the amount withheld by your employer is not relevant. Like my reply before... the "amount you pay" is not relevant. The amount you owe(after other credits) is whats important.

 

[TaxmanHog]

I'll be back to this thread in the AM ...... Ya'll have some fun for now!

 

[MickeyAO]

Actually, you want to look at line 24, Total Tax if you are self employed or have other taxes.

 

[Roy2001]

No I'm not...the amount withheld by your employer is not relevant. Like my reply before... the "amount you pay" is not relevant. The amount you owe(after other credits) is whats important.

Yes. You need to pay == you owe. And does not matter how much withheld by payroll.

 

[greenne]

Actually, you want to look at line 24, Total Tax if you are self employed or have other taxes.

I'm sure Noel will set us all straight tomorrow, but I don't *think* you can use the EV credit to "pay" for Self employed tax. You report the EV credit on schedule 3 and everything is "settled" on line 22 (which is why it says "if zero or LESS" enter zero.

Later on line 23 is where you roll in SE tax. Since you can't carry a negative number(tax credit) on line 22..it *appears* like you have to pay the full SE tax..even if you had schedule 3 credits left over.

But again I will defer to Noel...

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