They do however allow to contribute to 401k as AFTER TAX, which can be rolled into the Roth as a "back-end rollover?", which I don't fully understand yet.
Most 401k's allow you to take a loan from your funds, and you pay yourself back with interest. So, I think that's a conceivable temporary option. Make the payments until you get the tax credit, then repay in full.
However, at 1.5% to 2.5% interest, a car loan is probably some of the cheapest money you're going to get loaned to you. If you have a higher interest rate loan (student loans, equity line, credit cards), IMHO you're much better off paying down your highest interest loan with the tax credit instead of your lowest interest loan.
You're repaying a loan, and any loan you repay is with post tax dollars. You can't really start your tax analysis in the middle of the equation without accounting for the dollars being pretax in the first place. The original money you put in was pretax dollars and the money you pull out at the end of the day is taxed. You are taking a withdrawal/loan out and repaying it. Plus this is a bridge loan to get you through a few months. You're not paying +/-30% income tax on $7,500 twice anyway you slice it.
So from what I read...
as a freelancer who pays big quarterly estimated taxes
I can reduce each of the 4 payments by (7500/4) by 1,875?!
(I have much more than 7500 on line 63 for 2016).
thx for any clarity , you all rock!
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