[DrPartagas]

Do you need to pay 7,500. on annual federal taxes during the 2022 calendar year in order to claim the 7,500. PHEV tax credit? or Is it a blanket credit regardless of the income and tax that we report on our tax forms?

I'm wondering if the tax credit runs on a grading scale dependent upon one's income tax or not. As a result, if you report 5,000., would one receive a lesser tax credit if you purchased the same 2022 X5 45E?

Has anyone filled out the tax form? Anyone have an accurate answer this question?

TY

[nZtiZia]

the tax credit is up to $7500, so if your tax liability is only $5000, it'll credit $5000, making your liability $0 upon filing. say you're liable for $35k in taxes, you'll get $7500 credit making you liable for only $27500.

[DrPartagas]

Got it. That make sense. Thanks

[Neotwo]

Also rebate is avalibale if you buy using finance or cash. Not for lease.

[nZtiZia]

Originally Posted by Neotwo

Also rebate is avalibale if you buy using finance or cash. Not for lease.

it's not a rebate. it's a nonrefundable credit. (two different things)

technically, the credit also applies to leases, but the dealership gets it, not the lessee.

[TurtleBoy]

Originally Posted by nZtiZia

technically, the credit also applies to leases, but the dealership gets it, not the lessee.

The dealership doesn't get it, BMWFS does.

[nZtiZia]

Originally Posted by TurtleBoy

The dealership doesn't get it, BMWFS does.

thanks for clarifying. I just knew someone in BMW land got it :P

[mephisto2k2]

Originally Posted by nZtiZia

the tax credit is up to $7500, so if your tax liability is only $5000, it'll credit $5000, making your liability $0 upon filing. say you're liable for $35k in taxes, you'll get $7500 credit making you liable for only $27500.

Do you mean I would need to change my withholdings to ensure I have $7500 tax liability when filing taxes?

[TurtleBoy]

Originally Posted by mephisto2k2

Do you mean I would need to change my withholdings to ensure I have $7500 tax liability when filing taxes?

No. It is your total tax liability, not what you owe when you file your taxes.

[ddnmkun]

Was researching the same subject and ran into this on Reddit, fully explained.

https://www.reddit.com/r/Clarity/com...bout_the_7500/

Also since it’s tax season, plug into your turbo tax like you have bought one in 2021 and see how the numbers go for you, assuming your income won’t be much of a big change.

[airduster]

Originally Posted by ddnmkun

Was researching the same subject and ran into this on Reddit, fully explained.

https://www.reddit.com/r/Clarity/com...bout_the_7500/

Also since it’s tax season, plug into your turbo tax like you have bought one in 2021 and see how the numbers go for you, assuming your income won’t be much of a big change.

I confirm it works as you explained on Turbotax, which adds $7500 to my returns no matter if I had refund or due! I was just about to change my tax withholding for this year. Thanks!