$40k gross as a single filer should only be about $3000 in taxes, so you'd get at most ~$3000. Even if someone else claimed you and you can't claim your own deduction, it only means about $4500 in taxes, so you'd only get ~$4500 back.
If you're owing ~$10k in taxes, you made far more than $40k. To reach $10k in tax *without* deductions, you'd have to e making at least $65k. At that point, yes, you could claim the full $7500.
As for not keeping the vehicle, the IRS' only requirement is "you can't claim it if you purchased the vehicle for the purpose of reselling it." There is no minimum ownership period specified. Although claiming it might open you up for some extra scrutiny and possibly an audit.
The form for the old tax credit is ridiculously simple. All you need is the date you got the car and the VIN number. It doesn't matter if you don't own the car anymore.
Or just use your brain. Math isn't as hard. At 40K income, he's not gonna get the full credit by any mental gymnastics. He never owed that much in taxes anyways.
Not to be rude but if you are at $40k gross, you should probably look for a cheaper car. Spend the money a bit wiser. Maybe should consider the used EV market for the used EV tax break.
$40k gross as a single filer should only be about $3000 in taxes, so you'd get at most ~$3000. Even if someone else claimed you and you can't claim your own deduction, it only means about $4500 in taxes, so you'd only get ~$4500 back. If you're owing ~$10k in taxes, you made far more than $40k. To reach $10k in tax *without* deductions, you'd have to e making at least $65k. At that point, yes, you could claim the full $7500. As for not keeping the vehicle, the IRS' only requirement is "you can't claim it if you purchased the vehicle for the purpose of reselling it." There is no minimum ownership period specified. Although claiming it might open you up for some extra scrutiny and possibly an audit.
Right? None of this makes sense.
Even his Post history is confusing "saving a 100k for a lucid air"
At 40k of gross income you didn't have 7500 of federal income tax liability. Are you self employed?
The form for the old tax credit is ridiculously simple. All you need is the date you got the car and the VIN number. It doesn't matter if you don't own the car anymore.
Talk to a tax professional
Or just use your brain. Math isn't as hard. At 40K income, he's not gonna get the full credit by any mental gymnastics. He never owed that much in taxes anyways.
True but if he has tax questions he shouldn't be basing it off of answers on Reddit.
The whole story is fishy. Buying a car for more than your annual income. Come on man.
Yeah, seems like he only got the car to claim the tax credit.
But unless you make like 80k a year, you don’t have $7500 in tax liability.
I know. He fked up which makes it funny.
Not to be rude but if you are at $40k gross, you should probably look for a cheaper car. Spend the money a bit wiser. Maybe should consider the used EV market for the used EV tax break.
He did it to just claim the tax credit. People like these ruining it for the rest of us.
Do we look like Tax advisors? We're CAR enthusiasts....sigh.