Aptera › Community › Aptera Discussions › More information on the future of EV Tax Credits in the US… › Reply To: More information on the future of EV Tax Credits in the US…
MemberAugust 13, 2021 at 5:13 pm
I think you may misunderstand, This type of credit is against your total tax bill for the year, not for what you owe or get at filing time, so it would increase your refund to offset for taxes paid. This type is classified as “Non-refundable” as opposed to “Refundable” the difference being that with a “Non-refundable” the credit cannot exceed your taxes owed for the year. (IE a $7500 credit can reduce your $10,000 tax liability for the year down to $2500, but if your total Fed Tax liability was only $7000 the excess $500 goes away and ceases to exist, if it were a “Refundable” credit you would get back the $7000 you paid in taxes plus $500 bonus dollars at filing time.