Federal and State Incentives for Plug-Ins, EV's

I agree - that example is a no-brainer. As would be most everyone's given it doesn't take much to have owed and paid $2500 over the course of the year.
I think some were under the impression that you actually needed to owe the govt $ at the end of the year to take the credit. Your earlier post seemed to question that :

I called the IRS - its not that you need to owe 2500 after all is said and done - you need to have owed and paid 2500 in taxes during the year...​

"...hmm, that's a funny answer from IRS...not sure I agree."

 

Some folks may have significant income, but it is offset by business losses and "loopholes", so they end up owing very little tax. And folks living on retirement income may owe very little tax, depending on their source.

As pointed out, how much you paid toward your tax liability during the year in withholding or estimated tax payments is irrelevant to this discussion.

 

I can't speak to the former* but looking at the standard deductions and current tax rates it looks at though if you made 38k used married filing jointly and the max 3k in stock losses you'd have owed and paid $2,500.
That goes for retirees too - excluding those taking just Roth $. I'd say its a rare retiree who's receiving under 38k and would buy a brand new PiP

* remember even Romney and Obama paid over 11%

 

Rare yes, but not zero.

 

Or, you make 100K per year, pay $25K in taxes, get some deductions, pay $20K in taxes, but say you took capital gain losses of $20K or had a carry over loss, then the credit would be useless too.

 

Nooo! - cap gain losses are limited to 3k per year - if you have 20k in losses you get to take 3k now and carry over 17k for future years

here are links :
Ten Important Facts About Capital Gains and Losses

What is if any the maximum allowable short term capital losses you can claim on your taxes

 

ok - forget the carry over losses. take losses on some stocks you bought at a higher price and get your 20K of losses that way.

 

that's what I'm saying - you can't take 20k in losses
see that attached IRS link
the most anyone can take in any one year is 3k

all this leads back to the fact that if you make at least 38-40k you'll be able to take that PiP deduction
and even less income than that if single

 

Ah - ok. You can use more than 3K to offset gains though, I believe. So yes, you'd have to get your income taxes reduced by other means.

 

I recently purchased a 2012 Prius Plug-in advanced: can or should I file a for the credit in advance of filing my 2013 taxes

 

No, you'll have to wait for your 2013 return.

 

You should change your withholding if you will be overpaid. No reason to not collect your cash sooner. Remember to change it back in January, as appropriate.

 

Thank you all!
To be clear I have been a member for a while (largely lurking and learrning).
This is the second 2012 PIP I've bought (first was used & w 5K miles).
For pricing reference, I purchsed the first in June 2013, a standard PIP first From Acton Toyota in Acton Mass, for $24.5K, the second, a PIP Advanced was just pruchased new for 31K from Prime Toyota in Boston.
Both dealers met me in Bennington VT (our 2nd home in VT), where we registered them and then parted.
As a family we have and continue to own and drive two additional Prius' a 2007 & 2009 (all excellent efficient vehicles)

 

I am shopping for a PIP and doing research on incentives.
I read through this thread and still not sure if I understand the $2500 federal incentive correctly.
If my 2013 federal tax is $7000 and my company withheld $7500 from my salary for federal tax, I'll get $500 refund from IRS at tax time (2014). Now if I buy a PIP, is my tax reduced by the $2500 credit and I will get $3000 refund from IRS instead?
The reason I ask because a salesperson at a dealer told me I only get the $2500 credit if I underpaid my tax by that amount. If I overpaid IRS, I won't get the $2500 credit. It doesn't make sense to me.

PIP owners - please clarify. Thanks.

 

sorry if this question has been asked before but its a simple one. Is the $2500 tax credit for California a refundable tax credit or non rewindable

A refundable credit means that the tax break will get you money back from the IRS even if your tax bill is zero. For example, you owe $500 and can claim a $1,000 tax credit. If that credit is refundable, you'll get $500 back as a refund.
However, if the credit is nonrefundable, you'll only be able to use the credit to zero out your tax bill, but no more than that. The excess $500 from the credit is lost.

 

. Good information regarding the tax credit. Not so good on 3.3% and hold for 20 years. Probably most of the working population on PC would want to double their money in 3-5-7 years and do it in a retirement fund. Mutual Funds can do this.

 

$7500 doubling every 7 years =. $60,000 in 21 years, actually more as the interest, makes interest. VERSUS. : $15,000 in 20 years.
7 years would be considered normal or conservative. All tax free, naturally.