Chevy Spark EV

[NutBucket]

Then you are good to go!

 

[BurnItDwn]

My little brother is buying a cheap daily driver to replace his failing Cobalt ..
He has an 86 VW for his project cat, but he needs something more or less guaranteed to get him to/from work as well ..

He drove half a dozen small cars, and he mentioned the Chevy Spark as being the best car of the bunch (he is stubborn and insists upon standard/manual transmission, prefers RWD, Rear Engine or mid engine, old 911's are too expensive, and you can't get 2CV parts in the USA, Miatas are outside his price range due to high resale. He drove an MR2 for like 10 years, and hes considering another one, but, he is also considering a new Spark .. (He is limited to cars under about 155 inches in length as anything longer wont fit on the driveway behind his beatle)

 

[DietDrThunder]

Just because you don't owe them anything when you files doesn't mean you didn't pay tax. It means your withholdings were correct. What you need to do is look at your 1040 and look for the line towards the end that says this is your total tax, or something to that effect. If that figure is greater than $7500 you will collect the full rebate.

There is no maximum income limitation for claiming the New Plug-in Tax Credit. As long as a taxpayer otherwise qualifies for the credit and has a sufficient tax liability for the year, the taxpayer can claim the New Plug-in Tax Credit to reduce that tax liability down to zero (but not below zero). After the taxpayer has reduced his or her tax liability to zero, the taxpayer will lose any remaining excess New Plug-in Tax Credit, assuming the vehicle was used solely for personal driving.

So, if you are going to buy a EV and get the maximum tax credit of $7,500, you must reduce the amount of taxes you pay during the year and owe at least $7,500 to the government in order to claim the full tax credit. So let's say you earned $121,000 for 2016 and you'll normally pay around $15,000 in income taxes, you'll have to change your W-2 to decrease the amount of taxes you pay during the year by half in order to claim the full tax credit.

This will also mean you must be very careful when you take possession (get the state title) of the vehicle. If you take possession in a little past the last half of 2016, you won't have enough time to reduce the amount of taxes you pay the rest of the year to claim the full credit.

Also, if you are Single and earning less than $46,850 with no other deductions, or married filing jointly and earning less than $56,000 with no other deductions, you won't get the full $7,500 tax credit.

 

[NutBucket]

What? There's no need to decrease withholdings. You would only do that if you don't want a "refund" when you file.

A credit is a credit. Why would the amount of withholding have any effect on collecting the credit?

 

[DietDrThunder]

What? There's no need to decrease withholdings. You would only do that if you don't want a "refund" when you file.

A credit is a credit. Why would the amount of withholding have any effect on collecting the credit?

A credit isn't always a full credit. "After the taxpayer has reduced his or her tax liability to zero, the taxpayer will lose any remaining excess New Plug-in Tax Credit." So if you owed the government $1,000 in taxes, your tax credit would be $1,000. If you were getting a refund of $400, your tax credit would be $0. You have to read the tax code carefully.

Believe me, I almost found out the hard way on the American Opportunity Credit for my daughter's college. It is 100% on the first $2,000 and 25% on the next $2,000, which should give you a total of $2,500 in tax credits. Only if your MAGI is below $80,000 if single or $160,000 if married filing jointly. If above those levels, you don't get the credit. But wait! There's more! If you qualify and owe the government $0 at tax time, the most you can be refunded is $1,000. But if you change your withholdings and owe the government $1,500, you can take the full tax credit, and get a $1,000 refund.

Each tax credit has it's own set of rules. You have to understand the tax code for each type of credit you are trying to obtain in order to maximize your credit.

 

[Ns1]

So if you owed the government $1,000 in taxes, your tax credit would be $1,000. If you were getting a refund of $400, your tax credit would be $0. You have to read the tax code carefully.

To clarify here:


(Revenue less Deductions) * Tax Rate = Tax Liability
Tax Liability - Tax Credits = Net Tax Liability
Net Tax Liability - Taxes Collected = Tax Owed (Refund)

If the credit is non-refundable, the tax payer would get credit up to his tax liability, to a max of $7500. A tax payer would get the full $7500 if the credit is refundable.

 

[Mandres]

A credit isn't always a full credit. "After the taxpayer has reduced his or her tax liability to zero, the taxpayer will lose any remaining excess New Plug-in Tax Credit." So if you owed the government $1,000 in taxes, your tax credit would be $1,000. If you were getting a refund of $400, your tax credit would be $0. You have to read the tax code carefully.

I think you have a fundamental (but common) misunderstanding of the income tax formula. Your tax liability has nothing to do with how much withholding is taken out of your check.

Typically:
if your Taxable Income (AGI less exemptions&deductions) is 100k, then your tax liability is approximately $21k. If this is the only credit you qualify for your tax liability is now $13,500.

If you had $10k withheld over the year, you must pay $3.5k. If you had $20k withheld you will get a refund of $6,500.

If your Taxable Income is $40k, then your tax liability is approximately $5,800. The $7500 credit reduces your tax liability to -0-. You don't owe any taxes this year, so you will get all of your withholding refunded to you, whether it was 10k or 20k or nothing. You don't get anything "extra" for the difference between $5,800 and $7,500, it just wipes out everything you owe. This is referred to as a non-refundable credit. Some refundable credits, like the earned income credit, would pay you that difference.

Does that help at all?

 

[DietDrThunder]

I haven't looked very far into the details of this credit, but I find this very hard to believe. Your tax liability has nothing to do with how much withholding is taken out of your check.

Typically:
if your Taxable Income (AGI less exemptions&deductions) is 100k, then your tax liability is approximately $21k. If this is the only credit you qualify for your tax liability is now $13,500.

If you had $10k withheld over the year, you must pay $3.5k. If you had $20k withheld you will get a refund of $6,500.

I suggest reading the IRS tax code, then we'll discuss this more.

 

[Mandres]

I suggest reading the IRS tax code, then we'll discuss this more.

From Edmonds.com:
"You'll often hear that a credit is worth "up to" a certain amount. "Up to" is the critical modifier. The federal incentive is usually referred to as a flat $7,500 credit, but it's only worth $7,500 to someone whose tax bill at the end of the year is $7,500 or more. Let's say you buy a Nissan Leaf or other eligible vehicle and you owe $5,000 in income tax for a particular year. That's all the tax credit will be. Uncle Sam's not writing a refund check for the other $2,500."

Which is a simpler way of stating the same thing I just explained above. Your earlier post about having to adjust the amount of withholding based on whether or not you're about to buy an EV shows a flawed understanding of how tax credits work.

 

[Ns1]

I suggest reading the IRS tax code, then we'll discuss this more.

he's correct in the example and numbers he provided.

 

[DietDrThunder]

From Edmonds.com:
"You'll often hear that a credit is worth "up to" a certain amount. "Up to" is the critical modifier. The federal incentive is usually referred to as a flat $7,500 credit, but it's only worth $7,500 to someone whose tax bill at the end of the year is $7,500 or more. Let's say you buy a Nissan Leaf or other eligible vehicle and you owe $5,000 in income tax for a particular year. That's all the tax credit will be. Uncle Sam's not writing a refund check for the other $2,500."

Which is a simpler way of stating the same thing I just explained above. Your earlier post about having to adjust the amount of withholding based on whether or not you're about to buy an EV shows a flawed understanding of how tax credits work.

Mandress, I'm not disagreeing with your explanation. You nailed it. I was responding to NS1's earlier post, not yours. It is not really a flaw. Depending on your situation, all I was trying to say was that a person may have to change their withholdings in order to owe more in taxes, to maximize the amount of tax credit they will qualify for.

I always adjust my withholdings all during the year. I do this so I don't give the government an interest free loan, and also try to make what I pay as close to $0 on tax day as possible. Plus, as I stated in an earlier post with the American Opportunity Tax Credit, if I had done nothing and not adjusted my withholdings, I would have only been eligible for $1,000 of this tax credit instead of the full amount of $2,500.

 

[Ns1]

Depending on your situation, all I was trying to say was that a person may have to change your withholdings in order to owe more in taxes, to maximize the amount of tax credit you will qualify for..

I suggest reading the IRS tax code, then we'll discuss this more.

 

[Mandres]

all I was trying to say was that a person may have to change their withholdings in order to owe more in taxes, to maximize the amount of tax credit they will qualify for.

I think that's where the confusion is. I'm really not trying to beat you up - this stuff is complicated and hard to explain without powerpoint or something. The important point is that the real economic benefit you get from a credit like this is exactly the same whether your employer withheld $10k, $20k or nothing from your paychecks. The American Opportunity Tax credit works the same way, except that one is 40% refundable. Adjusting your withholding makes no difference in the amount of the credit a taxpayer qualifies for on that one either.

I agree it's smart to try to minimize your refund so you can earn the interest on your money instead of the feds.

 

[fr]

Dublin Chevrolet is advertising $67/month lease.

http://www.dublinchevrolet.com/Special/new/2016-Chevrolet-Spark_EV-all-Spark_EV___Only_$67/month!-Dublin-CA/65991630

If you live in the right places, this could be a money maker.

 

[core2slow]

Dublin Chevrolet is advertising $67/month lease.

http://www.dublinchevrolet.com/Special/new/2016-Chevrolet-Spark_EV-all-Spark_EV___Only_$67/month!-Dublin-CA/65991630

If you live in the right places, this could be a money maker.

pretty good term!


So i emailed a few places and picked one up from Delillo Chevy in HB yesterday 2016 electric blue 2LT for 25k OTD. It didn't have the DCFC option but since i'll be primarily drive it to work and home anyway, it didn't seem like a much needed option to get. One thing i noticed was the road noise coming from the front, I don't know if it's the celestial antenna or the wipers, but the car is so quiet that my ears start to pick up on other stuff hahaha.:wub:

 

[herm0016]

pretty good term!


So i emailed a few places and picked one up from Delillo Chevy in HB yesterday 2016 electric blue 2LT for 25k OTD. It didn't have the DCFC option but since i'll be primarily drive it to work and home anyway, it didn't seem like a much needed option to get. One thing i noticed was the road noise coming from the front, I don't know if it's the celestial antenna or the wipers, but the car is so quiet that my ears start to pick up on other stuff hahaha.:wub:

Grats! When we first got our volt, i drove over a plate the the gas station and thought i hit something and stopped to look under it, its funny how your reception changes when the car is nearly silent. Our snow tires sound like the mud tires on my truck! haha.

 

[NutBucket]

Definitely sounds like a good deal. Let us know how you like it and how it works out for you.

 

[Ns1]

pretty good term!


So i emailed a few places and picked one up from Delillo Chevy in HB yesterday 2016 electric blue 2LT for 25k OTD. It didn't have the DCFC option but since i'll be primarily drive it to work and home anyway, it didn't seem like a much needed option to get. One thing i noticed was the road noise coming from the front, I don't know if it's the celestial antenna or the wipers, but the car is so quiet that my ears start to pick up on other stuff hahaha.:wub:

You got in @ $67/mo? What's your total monthly payment including taxes and shit?

Man I gotta make some calls when I get home.

 

[SearchMaster]

You got in @ $67/mo? What's your total monthly payment including taxes and shit?

Man I gotta make some calls when I get home.

Looks like he bought instead of the $67 lease.

 

[Ns1]

obviously I need to L2R.

 

[core2slow]

Looks like he bought instead of the $67 lease.

Lowest I see is $99 lease but that's for the base trim w/o DCFC.

Anywho, after a week of ownership the ride has been amazing. ONE thing that bugs me is the auto light. There's really no true OFF switch and I have to constantly toggle it every time I'm in the car.

@fr, do you have this issue with your year? I'm thinking that theres a fuse somewhere that I can pull to turn off this function...

 

[NutBucket]

Auto light? You mean automatic headlights? What issue are you having with them?

 

[core2slow]

Auto light? You mean automatic headlights? What issue are you having with them?

It's not really an issue, it just bugs me that I can turn it off permanently or manually turn it on whenever i want it. Every time i power on the car, the low beam turns on and i have to toggle on the stalk on the left side to turn it off...until the next time i power the car back on.

 

[NutBucket]

What's wrong with automatic headlights? They're great for folks who forget to turn on their lights.

 

[herm0016]

it's law to have daytime running lights now, some cars just use. the low beams. why do you have an issue with this? what is the reason you turn off this safety feature every time you get in the car?