7500 EV tax Credit Limited

[George S. Bower]

I was wrong (again).

Unlike my solar PV tax credit (form 5695), The 7500$ EV tax credit is not allowed to be carried over to the following year if your tax liability is less than 7500$.

Form 8936 is the form you will use to take the credit:

http://www.irs.gov/pub/irs-pdf/f8936.pdf

[hermperez]

So you have to have a tax liability to take advantage of it?.. there go the retired people on social security.. oh the agony!

[George S. Bower]

So you have to have a tax liability to take advantage of it?.. there go the retired people on social security.. oh the agony!

IF you are retired and I think you are, and you have an IRA, then pull just enough out of your IRA to offset the unused part of your tax credit. Then reinvest the money and it's there for you in the future, when you need it, and the guvm't paid the income tax for you. (withdrawing funds from a regular IRA is treated as ordinary income)

[Vegaselectric]

If you use it for the max tax credit taking it from a Traditional IRA, you will pay the tax. So, you can put it back in a Roth IRA to gain interest tax free.
However, Congress is planning nasty things right now, (*Forcing the movement of IRA's & 401k's into Treasury Bills, "ONLY" since no one will be buying the worthless debt!) to help fix the deficit on the backs of IRA's & 401k's.
Call your Congressman and Senator and say, "HELL NO TO THIS REVENUE IDEA!"

EVERBANK DAILY NEWSLETTER FOR 8-9-10
"Remember when I told you about the plan that the U.S. was discussing about personal IRA's? Remember? The rumor was that the U.S. would convert IRA's and 401K savings accounts, and require that only U.S. Treasuries could be bought... Well... Apparently that rumor is gaining teeth, according to Assistant Labor Secretary Phyllis C. Borz, and could be discussed as early as next week... Hey! China doesn't want our Treasuries yielding less than 3% (10-years) so why would we? Besides, If I've said this once, I've said it one hundred times... Treasuries are the biggest bubble, and continue to be inflated.... You had better let your Senator or Representative know if you are against this "conversion"... Speaking of number 2 pencils... How's your daily journal going? Don't remember what I'm talking about? About 9 months ago, I told you all that you should be keeping a daily journal of all the changes going on in this country, so that one day, you'll be able to properly explain to your grandkids what happened...
Thanks for reading the Pfennig! I hope you have a Marvelous Monday! Chuck ButlerPresidentEverBank World Markets1-800-926-49221-314-647-3837

[ChrisC]

That's almost certainly misinformation.

When did you stop beating your wife?

[George S. Bower]

If you use it for the max tax credit

Vegas,
I 'm not sure if you understand what I meant to say. It has nothing to do with a Roth IRA. You put the money anywhere you want it. you just got it out of jail(so to speak) without having to pay the tax so that you could take the full 7500 EV tax credit.