I usually do not owe tax. If I converted sufficient traditional IRA investments to Roth IRAs which resulted in $7,500 tax due, can I then use the $7,500 tax credit for electric vehicles?
Md Ariful Islam
বিএসসি(সিএসই)
,
এমবিএ(মার্কেটিং)
8 views
1 Answers
Dr. Md Rushad Rahman
এমবিবিএস(আরপিএমসি)
,
পিজিটি(মেডিসিন)
You are able to claim the $7,500 electric vehicle tax credit to the extent that you have a federal tax liability regardless of what type of income generated that tax liability. Converting a portion of your traditional IRA to a Roth IRA would be one way to generate a tax liability in order to use the electric vehicle tax credit. If you live in a state that imposes an income tax, be sure to consider whether the Roth IRA conversion will generate state tax due.
8 views
Answered