Clunkers program makes no sense to me

Discussion in 'Chrysler' started by raveneon, Jul 27, 2009.

  1. ALS

    ALS Super Moderator Staff Member

    I'll pay over $50K in taxes this year so getting $4,500 back is something I'll look forward to. Plus the Prius is going to cut my fuel tax contribution by at least $200 a year. :D
     
  2. Nevyn

    Nevyn Well-Known Member

    The problem with me is that I already get 100% of my Federal AND State taxes back. So a tax credit is 100% useless.
     
  3. Taliesin

    Taliesin Well-Known Member

    Umm... not quite...

    A tax credit is counted as taxes that you paid. When you get your taxes back, you will get the tax credit as well.

    Just like the Earned Income Tax Credit.
     
  4. Nevyn

    Nevyn Well-Known Member

    That's what I thought too. But when I did 'em in February, they seemed to say that if the adjusted income is less than zero, enter zero.

    Unless I did something wrong...

    Either way, they still mailed me a check for 4 thousand bucks.:flag:
     
  5. worthywads

    worthywads Don't Feel Like Satan, I am to AAA

    ^

    Why not change your withholdings down to nothing? Why let the government hold your money for you?
     
  6. psyshack

    psyshack He who posts articles


    That is what the wife and I do. If we have to write a check,,, its very small indeed. and if we get one from them it is also very small.

    Never make a interest free loan to the government.
     
  7. drimportracing

    drimportracing Pizza driver: 61,000+ deliveries

    Could you explain this to me?

    Is it somehow beneficial to pay taxes throughout the year in order to get this tax credit?

    I usually get 100% of my taxes back because of delivery mileage and mortgage, etc. so in the last few years I have done as worthywads and psyshack and reduced my withholdings to near zero as I can better use my money than the Iraqis, GM, the unemployed who don't look for work and other similar government investments.

    So I'm confused about the tax credit, does this somehow give me some advantage by increasing withholding in order to have thousands loaned to the government through the year and then later refunded? :confused: - Dale
     

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