IRS Federal Tax Credit; 2020 update?

Discussion in 'Prime Main Forum (2017-Current)' started by DocMRI, Oct 10, 2019.

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  1. eveyo

    eveyo Junior Member

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    awesome thank you. no wonder I couldnt find the income limit online lol.

    if some how I come up short for income liability aside from ira conversions are there any other things to do to increase the liability to get the full credit? I think I will have the liability but wanted to see in case
     
  2. fuzzy1

    fuzzy1 Senior Member

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    On the top end, I'm not (yet) seeing any phaseout of the sort that is applied to several other credits.

    As for increasing income for the purpose of boosting the tax bill, since retiring and getting rid of the paychecks, I have been doing mostly Roth IRA conversions. And this year started regular IRA withdrawals for the spouse. Selling stock or mutual funds for capital gains may also work, but if you are on the low income end trying to reach up to the EV credit, then beware that you are probably in the 0% rate range for long term capital gains, so they won't work for this purpose (unless you sell enough to go into the next up bracket). Only short term capital gains, taxed the same as wages, work well for this, and if you are a buy-and-hold sort, you likely don't have much in short term gains.

    And you'd want to already know your tax situation fairly close. The deadline for these boost adjustments is when the market closes today, in less than two hours. Small taxable income reductions by making regular IRA contributions can be achieved as late as April 15, but I don't believe boosts have that extra time.
     
  3. Kimberly19

    Kimberly19 Member

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    I still only see the firm with 2018 up top, but the 2020 Prime is listed on the irs site, under cars that qualify.

    I wanted to get my taxes filed in the next couple weeks. Do I have to wait for that 2019 form to show up online?
    https://www.irs.gov/pub/irs-prior/f8936--2018.pdf
     
  4. noonm

    noonm Senior Member

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    Same situation here.

    I'm going to guess that we need to wait for the 2019 form to be released. However, its likely to be the same, so you can probably get a head start by filling out the 2018 form.

    I also like to finish up my tax returns earlier (especially when I'm expecting a big refund), but I've resigned myself to having to wait on the IRS this year due to the EV tax credit form.
     
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  5. John321

    John321 Active Member

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    wrong form post deleted by poster
     
    #25 John321, Jan 27, 2020
    Last edited: Jan 27, 2020
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