2009 TDI eligible for $1300 tax credit!

[atc98002]

About tax rebates, does that mean if i paid say 10,000 in taxes for the year, and i had the rebate; i would get 1,300 back after i sent in my tax forms? Or does that mean that say i had 50,000 in taxable income that ended up being 10,000 (20%) taken for taxes ; instead i would only have 48,700 in taxable income and end up with say 9,740 (20%) taken for taxes? So would i basically get back 260 bucks or 1,300 bucks? Sorry i'm not good with tax lingo.

It's a full tax credit, so it comes off the total tax due. It is not like a deduction, which reduces your taxable income.

I'm not a tax consultant, so I'm perfectly prepared to be proved wrong. I'm just really sure I'm right

 

[aanvari3]

So i'll get the full 1300 back from the gov when i file my taxes along with whatever?

 

[Jibeho]

Yes depending on your tax situation.

So i'll get the full 1300 back from the gov when i file my taxes along with whatever?

 

[lad]

Also take a look at your state tax exemptions. The TDI may qualify for sales tax credits or exemptions which are similar to Hybrid cars in your area

 

[dhdenney]

I just ran the IRS withholding calculator as if I got the $1300 tax credit and my refund was projected to be less than $1000. So in order to get the $1300 back I would have to change my exemptions but that is 6 of one, half dozen of another. One way or another, you are paying at least some of that in. Like Jibeho said, it depends on your tax situation.

 

[Pelican18TQA4]

I just ran the IRS withholding calculator as if I got the $1300 tax credit and my refund was projected to be less than $1000. So in order to get the $1300 back I would have to change my exemptions but that is 6 of one, half dozen of another. One way or another, you are paying at least some of that in. Like Jibeho said, it depends on your tax situation.

And where might one find this withholding calculator?

 

[dhdenney]

And where might one find this withholding calculator?

http://www.irs.gov/individuals/article/0,,id=96196,00.html

 

[Pelican18TQA4]

http://www.irs.gov/individuals/article/0,,id=96196,00.html

Thanks!

 

[09tdiman]

Well, that'll help a little for those buying from dealerships that are marking up $2,000 plus over MSRP.

apparently im lucky and my 09 costs 23900 plus all the tt&l
but no sunroof owell ill live (i think)

 

[Gil]

I was at the stealer Friday and a salesman told me that in Conneticut the new TDI is SALES TAX FREE along with the IRS one time gift.
He also told me that they have a long list of people who want to buy one.

 

[clintontull]

I think im going to go for broke on mine!. I have 115,000 miles on my 03 beetle tdi and going to squeeze every extra mile i can from that engine.

 

[Jibeho]

115,000 is nothing, keep Motoring brother

I drive my 2000 NB daily 75 miles, just returned from a 2500 mile road trip. Just take care of it and you will be rewarded!

My Jetta is a 3rd car and my wife's new daily driver to take some strain off her MINI.

I think im going to go for broke on mine!. I have 115,000 miles on my 03 beetle tdi and going to squeeze every extra mile i can from that engine.

 

[donfromnaples]

Keep motoring on is right. I have three vehicles all over 10 years old, that all have well over 100,000 miles on them. My buggy has the least at 50,000 miles. It's a 2004.

 

[capflya]

Question for the tax wizards... I always end up getting money back from the IRS. From what I read the $1300 is off of the taxes owed... so If I do not owe taxes do I get screwed out of the $1300? Or does the $1300 get added to what the IRS owes me?

 

[Lightflyer1]

You always get "all" your money back or you get back what you overpaid? Big difference!

 

[Thunderstruck]

That's not an answer-if he doesn't owe any taxes, do they send a check for $1300?

 

[jvance]

That's not an answer-if he doesn't owe any taxes, do they send a check for $1300?

Whether you get it is independent of your total taxes, unless you tangle with the AMT. It's $1300 off of your total taxes. If your withholding is more than your total taxes, then you see this as a $1300 increase in your refund. IANAL, IANATA*, but this is how it's worked with every other credit I've claimed. Plug it into TurboTax and see what you get.

*I am not a lawyer, I am not a tax accountant.

 

[Lightflyer1]

He sounded confused to me as to whether he pays zero taxes or overpaid and gets some back. The answer will somewhat depend on his response. If he is overpaying, he will probably get the credit. If he owes zero taxes, I don't know. According to the IRS site:

"A tax credit is subtracted directly from the total amount of federal tax owed, thus reducing or even eliminating the taxpayer’s tax obligation."

So it looks like if he overpays, he gets more back. If he owes no taxes at all, nada.

 

[capflya]

He sounded confused to me as to whether he pays zero taxes or overpaid and gets some back. The answer will somewhat depend on his response. If he is overpaying, he will probably get the credit. If he owes zero taxes, I don't know. According to the IRS site:

"A tax credit is subtracted directly from the total amount of federal tax owed, thus reducing or even eliminating the taxpayer’s tax obligation."

So it looks like if he overpays, he gets more back. If he owes no taxes at all, nada.

That is my exact question. I overpay. I claim 0 on my W4 and get the amount that I overpay back. I don't get everything back, so I'm just curious if it would indeed be a $1300 on top of what I already get back, or if it goes under deductions like charitable donations and that sort of thing. For the past few years the standard deduction has been best for me since I'm in college and do not make very much money (story of almost everybody's life...) and just want to understand how the tax credit works for the TDI.

Thanks for the responses

 

[Lightflyer1]

If you over pay, this will reduce your tax obligation more so you should get more back. This is a credit not a deduction. It comes dollar for dollar off what you owe in taxes. For example:

You owe $5k in taxes. You had $7k withheld. You would have gotten the $2k back as over withheld. Now you should get $3.3k back with the credit.

Another example:
You owe zero in taxes but paid in $1k. You will get the $1k back but have no taxes to reduce so you don't get the credit. You get $1k back only.

Thunderstruck I hope you see why my question was legitimate after all.

 

[capflya]

Ok... thats what I was thinking, but I don't grasp this tax stuff unless I'm doing them and have all of the forms in front of me Thanks for the clarification.

 

[Lightflyer1]

Just remember I am not a tax expert. My interpretation from the wording on their web site.

 

[PetiteFlower]

I'm pretty sure that anyone who earns little enough money to owe $0 in taxes won't be able to afford a $25k+ new car...

 

[kcfoxie]

I'm pretty sure that anyone who earns little enough money to owe $0 in taxes won't be able to afford a $25k+ new car...

Unless you win the lotto, had a parent die, otherwise received an inheritance or tax-free money.... military, a few loopholed inheritance situations.

 

[Thunderstruck]

That makes more sense. The original question was slightly confusing as nobody pays no tax at all. It would be nice if they have him $1300 back even if he were in a situation of owing no taxes at all. Obviously there need to be cars available to purchase before you talk about getting the $1300, which doesn't seem to be the case at this time.

 

[capflya]

I'm pretty sure that anyone who earns little enough money to owe $0 in taxes won't be able to afford a $25k+ new car...

I pay taxes... I just over pay so I get money back at the end of the year...

The VW dealer has a jetta coming in about 4 weeks that my name is on so it's mine when it comes in. (check my sig...)

No worries lightflyer, if my taxes end up different and I don't get the money I wouldnt think of holding anybody on here responsible... "he told me i'd get money back!" Thats not me... Thanks for the backup on the interpretation. Thats how I read it, but wanted someone else's perception as well.

 

[Blonde Guy]

I'm pretty sure that anyone who earns little enough money to owe $0 in taxes won't be able to afford a $25k+ new car...

I'm self-employed, so I can easily see myself in above situation, depending on which year I buy a new car. If I was in a normal job with a periodic paycheck, I'd have to agree with above.

Even so, I sometimes wonder how smart it is to pay so much for a car? It's pretty much just a waste of money. I guess my attitude is what's kept me in my 1996 car for so long...

But as to the original question, I think someone who pays zero taxes, and takes the tax credit for buying a car will get a check for $1300. The IRS may also give him a complimentary audit at no extra charge. I'm also not an accountant, but speaking as a taxpayer who is frequently audited.

 

[Lightflyer1]

A tax credit reduces taxes owed. If you owe none there is nothing to reduce and the credit cannot be used. This according to the IRS webiste.

 

[Lightflyer1]

I pay taxes... I just over pay so I get money back at the end of the year...

Now we just need to find out why you insist on letting the government use your money all year for free. Over withholding more than a few hundred dollars "IS" costing you money!

 

[drckol]

How long is the free Sirius radio which came pre-loaded on my 09 TDI ? I think the salesman actually said that they now offer 1 yr. free.