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so this mean if your tax liability is less than 4500 then you get what ever ur tax liability is back.

therefore, i could withheld less each pay period amount to $4500 in a year as well.

thanks for the info

 

I think you mean allowances? I have my W-4 set up with enough allowances so that my withholdings throughout the year is similar to my tax liability. Thus, my refund is very little, or in the case of last year, I owed a little bit of money. My philosophy is that I would rather get the money I earned throughout the year (where I could invest it, pay off debt, buy things I want, save it and earn interest), rather than loan it to the government and then get a big refund at the end of the year.

If your tax liability is less than $4,500, then once the credit is applied, your liability would be $0. If there is remaining credit of the $4,500, you wouldn't get that refunded since this credit is a non-refundable credit. What would be refunded is any amount withheld from your paycheck throughout the year. So, for example, let's say you had $1,000 withheld, you would get a $1,000 refund from a $0 tax liability.

 

So technically, assuming my tax liability stay the same at $10,000, and my witholding is also $10,000, then i should get a big fat check of $4500 come filing season...Then there isnt really much i should do but to just buy the car lol

 

Correct. In those simple terms, if your tax liability (what you owe in taxes for the year) is $10,000, and you had $10,000 withheld from the sum of your paychecks, the $4,500 credit would give you a $4,500 refund (because your liability is now $5,500, meaning you overpaid taxes by $4,500).

You should be able to get a good idea of your withholding for the year by looking at your last paycheck stub of the year. It won't be exact until you get your W2 since other items will need to be taken into account, but that, combined with your taxes from last year, will give you an idea of what your tax situation looks like (again, provided no drastic changes have occurred, e.g. buying a house, new child, lottery winnings, major buying/selling of stocks, business activities, etc).

 

Had a good experience buying from Dianne Whitmire over at Carson Toyota.

She gave a little off the top for me before but not sure what she's doing now plus I got the $1000 off for bringing my own financing. So total off was $1500 for my Advanced and the experience was no hassle.

Another local dealer Closer to me offered invoice through my Costco deal but did some shady add one that I told them I didn't want to tack on another $2500 like dealer installed overpriced crap.

Beware those kinds of shifty dealers.


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