Been thinking about upgrading another car to prime (bought one last year), but have some tax credit questions and would appreciate suggestions about dealers with good incentives. I live in NJ, current 2017 Prime Toyota incentive is $5K, making it a better choice than 2018 ($500 only). So my questions are: I believe neither NJ nor its counties has any money incentive for PHEVs right? Please correct me if I'm wrong, I'd be kicking myself if I missed sth for my last purchase but at least won't miss for this one. Anyone knows some dealership offering good incentives for 2017 models? I've also heard from other threads that NorthEast dealers might be offering incentive (>$1K, some thread said $3K or sth.). Would help to know where to start negotiating. Would I get the $4.5K fed tax credit for 2018 tax year if I buy a 2017 model now (I already bought a 2017 model in 2017 and claimed the tax credit on my 2017 tax return)? I would think it's not an issue and dealer told me last year when I purchased that one can get one credit each year. Just want to confirm. Would appreciate any suggestion, thanks much! BTW we decided that Prime Advanced is the trim level we want (over Premium or Prius Four - which is much more expensive as it's 2018).
I didn't see anything about rebates or tax credits, no sales tax isn't a minor incentive on a car. How to Save Money with New Jersey Green Driver Incentives | DMV.ORG
Thanks. I viewed that document last year but I believe no sales tax is only for pure EV, not for PHEVs. Last year I had to pay sales tax on my Prime Premium too. I'd be more than happy if I was wrong though ...
1. No NJ state tax credits. 2. Look on http://www.cars.com and/or http://www.aaa.com to build a car & get quotes. Use zip codes from different parts of the state to see different quotes. 3. As long as the cars are new there is one credit per car. The credit is not refundable so whatever is in excess of the tax evaporates. http://www.cars.com shows 1068 cars available across the country. Holman Toyota seems to have 7. Team Toyota has 8. Turnersville has 1. Dayton has 4. DCH has inventory as well. Happy hunting.
Thanks! So the dealer was wrong in saying one credit per year, it's one credit per new car? Also I understand that if, say, your Fed tax for the year is supposed to be $5000, and you paid $4900, then with the Prime tax credit, you do get $4402 back - right? Your statement that you lose the credit if it's in excess of tax only applies to situation where your Fed tax for the year is not even at $4502, say, it's only $3000, then you can only take $3000 credit instead of $4502. I in fact went to each dealership's website to see the inventory, although at times a dealer would tell me the car I wanted was already gone. I doubt it was just sold when I start looking, judging by the fact that Advanced is clearly not flying off the lot. Wonder if it's because they were slow updating their website or just a sales tactic to get me to buy a different and/or instill a sense of urgency.
Correct, one credit per car and your refund is $4402. The credit is not refundable so whatever amount exceeds your liability disappears. The easiest way to increase tax liability is to increase income by converting an IRA to a Roth IRA. Find the instructions and read them before starting that process as it is no longer reversible. AFAIK, no dealer updates inventory on their website in real time. Never tell a potential sale you don't have the desired car in stock as there is always some chance he can be convinced to buy whatever is sitting on the lot. My guess is that it is a 50/50 mix. If I find a dealer plays that game with me I either don't return or my offer drops.
It has nothing to do with how much withholding you paid in during the year. It has to do only with your tax liability. EDIT Yes in your example you had a $5000 dollar liability, in which case you would qualify for the entire $4502 credit. Without the credit you would have owed $100. With the credit you would get a $4402 refund as you said. If without the credit you would have been getting a refund, with the credit your refund would be increased by $4502.
You can also adjust your withholding exemptions on the W-4 to increase your take home pay for the year you get a plug in instead of waiting until the end of year tax filing.
