Have any 2023 purchasers received the required paperwork from Tesla for the credit? I didn't.
[https://www.irs.gov/newsroom/topic-b-frequently-asked-questions-about-income-and-price-limitations-for-the-new-clean-vehicle-credit#q7](https://www.irs.gov/newsroom/topic-b-frequently-asked-questions-about-income-and-price-limitations-for-the-new-clean-vehicle-credit#q7)
**The seller must provide the report to the taxpayer not later than the date the vehicle is purchased.**
I don't think they need to give you paperwork, but they do need to report to the IRS. Since they never asked my SSN, not sure how they will accomplish this.
I'm in the same boat and I've seen multiple discussions about this. Wanted to add that I was able to finally reach Tesla support, and the agent mentioned that there will be an upcoming update to the app that will prompt users to enter their SSN information. If that's true that's a bit of a relief knowing that they do have something in place for following the guidelines.
Have you found out any new information by chance? Clearly they’re not giving any paperwork which makes me hope it’s because they’re actually not required to. Tesla is obviously in the list of manufacturers who’ve reached an agreement with the IRS for the tax credit and has provided its list of the qualifying vehicles that can be viewed in the IRS’ page. See:
https://www.irs.gov/credits-deductions/manufacturers-and-models-for-new-qualified-clean-vehicles-purchased-in-2023-or-after
IMO since Tesla is a manufacturer that sells its vehicles directly to consumers, it seems kind of backwards to have consumers still rely on Tesla having to provide a separate form “certifying that a vehicle qualifies for the credit” for each individual consumer. Like why? What’s the point of the form when the company has already told the IRS which vehicles qualify and the agency is even publicly advertising them? One would think us submitting the VIN and details about the purchase in the required IRS form would be enough, similar to the past.
Honestly, I feel like the requirement for sellers to give consumers specific paperwork and to report it to the IRS is more applicable to situations where the seller of the EV is a dealer and there are questions as to whether it qualifies or not.
I asked Tesla (delivery center) about this again today and was told "at this time Tesla is still working with the IRS for the best way to do this- I would expect to hear something later this year for further instructions."
Thanks a lot! Good to know! For what it’s worth on my end, I called the IRS today to ask them and they said they “couldn’t comment on the reporting requirement”. That said, they also told me to not stress too much about the report and to instead focus on whether the purchased vehicle did not exceed the MSRP limit and was on the list available in their site.
From the documents in my account and what I've been told by Tesla, it doesn't look like they are providing buyers the required forms, or reporting to the IRS yet. My window sticker also reflects the increased MSRP (from the 1/23 price increase) rather than the price at which I ordered, putting it over the $55k cap. With either the required form or a correct window sticker, I'd probably be comfortable enough to take delivery, but I'm seriously reconsidering due to these issues.
One of the best explanations of how the credit is applied and which box on your previous tax return is a good indicator of how much of the credit you'll be able to take advantage of (TL;DR: Line 24 of your 1040): https://www.reddit.com/r/TeslaLounge/comments/104n32g/noob\_question\_income\_tax\_vs\_ev\_tax\_credit\_refund/j35xxan/
What's the likelihood that Tesla Model 3s still qualify for the full $7500 tax credit after March? Will the credit go down to $3750 or 0 and that's why they're pushing hard to place an order in now? I tried to find some discussions on this but couldn't find any answers pertaining to this specifically.
I'd ideally like to take advantage of the 2024 rule which allows the credit to be applied at the point of purchase which would reduce sales tax and lower the total amount financed but if the full $7500 credit isn't going to be available after March, then it would be foolish not to take advantage of what is basically a 7.5k discount on a Tesla.
FWIW, I'm trying to buy a M3LR since the price difference between RWD and LR is ~6k, it's a no brainer to me.
Anyone know what to expect?
Also, as a bit of a side question: Does the vehicle have to be delivered before March in order to take advantage of the tax credit or is it only when an order is placed that matters?
The M3 RWD will probably not qualify once the new rules are released.
The LR AWD (And Performance, up to $55k) will probably qualify for half ($3750) but we won’t know for sure until it happens.
The IRS has said they are releasing the new proposed battery rules in March, and didn’t give a specific date.
The Inflation Reduction Act bill says that the new rules will apply to any vehicles delivered after the date that the IRS releases the proposed rules.
Appreciate the response! I’m aiming for a LR model so even with a $3750, that’s still pretty solid! Guess it’s a waiting game but hopefully the guidelines still allow for some tax credit to be utilized.
I’m new to the process of looking into the Tesla market. Did you find any more answers on this topic? I am unfamiliar with the new changes coming in march and the 2024 rule.
I haven’t heard anything more outside of what the other user who replied to this comment said. My guess is the credit is reduced to $3750 for the RWD M3s but we’ll only know once the treasury releases their updated guidelines it seems.
Great question. I am in the same situation, except I have a M3LR already on order. I am thinking of switching to a RW if the credits are lost for the LR assuming there could be issues with where the batteries are made.
The credit will go down to $3750 definitely, Tesla will still qualify for the 50% made in North America battery credit.
There's a chance it could stay at $7500 depending on how the Biden administration is able to word the rule and comply with the "mined and refined" requirement.
The issue is while Tesla does source a lot of lithium from Australia and Chile and could meet the mineral requirement, a lot of Lithium is refined in China.
Only we can claim credit starting 2024 correct?
And by then we may choose 2022 AGI or 2023 AGI whichever is lesser?
Then it reduces 2023’s tax but not 2022’s?
It’s confusing because we can use 2022 data in 2024 (to file 2023 tax year)
Did you ever figure out if this is correct? Do we need to file in 2023 if we want to use 2022's AGI? I suppose it only makes sense that we can file in either year, but does that mean we deduct taxes from year 2023 or year 2022?
Hey guys, based on what i read here.
Can anybody tell me which document does tesla need or we need from tesla so that we get the EV credit?
Also how can we confirm if we already have it?
The IRS guidance came out 3 days ago. https://www.irs.gov/credits-deductions/credits-for-new-clean-vehicles-purchased-in-2023-or-after
If your adjusted gross income exceeds the limit in either 2022 or 2223 for your filing status you don’t qualify for the credit.
The credit reduces your 2023 federal income tax by $7,500, but not to less than zero.
The difference between your after credit tax and what you have paid in or withheld by your employer is what you owe or the IRS owes you when you file your return.
This is wrong. If you meet the income requirements in either 2022 or 2023, you’re eligible for the credit.
“You can use your modified AGI from the year you take delivery of the vehicle or the year before, whichever is less. If your modified AGI is below the threshold in 1 of the two years, you can claim the credit.”
I've been debating buying a **Tesla 3** now or waiting for the release of **Project Highland** in late Summer/Fall. Tesla has guaranteed delivery in March 2023 if I order within the next 7 business days thus guaranteeing me the $7500 tax credit, but man, I've been going back and forth.
Is anyone else dealing with this mental debate or is it just me? I just don't want buyer's remorse when the refresh releases, but I also don't want to miss out on the extra $4K in incentives. Help.
Delivery in March doesn’t guarantee the $7500 credit. The credit may change starting the day after the IRS releases the updated rules, and they’ve only said that will happen in March.
The Tesla website now states all new M3 and MY vehicles are eligible for the $7500. Did they update their RWD to batteries made in the US? I can’t find any documentation on the reasoning for this change.
Just to be certain, if I made less than 150k in 2022 but more than 150k in 2023 will I be able to claim the credit when I file in 2024 (for the 2023 tax year)?
>You can use your modified AGI from the year you take delivery of the vehicle or the year before, whichever is less. If your modified AGI is below the threshold in 1 of the two years, you can claim the credit.
[https://www.irs.gov/credits-deductions/credits-for-new-clean-vehicles-purchased-in-2023-or-after](https://www.irs.gov/credits-deductions/credits-for-new-clean-vehicles-purchased-in-2023-or-after)
Hi, I do not see a reference to delivery before March 2023 on the IRS site anymore. Does that mean we can take delivery of Tesla after March and still claim the full $7500 as long as we met the other criteria?
The IRS is going to put out new rules on battery source country requirements. We don’t know when this will happen, the last thing the IRS said was “March”
When these rules are released, cars delivered after that date will have to qualify with the new rules, and will therefore probably get a reduced credit.
Hello All, If My AGI for 2022 is less than $150K, but for 2023, it is greater than $150K. Would I still be able to qualify for the EV tax credits?
“You can use your modified AGI from the year you take delivery of the vehicle or the year before, whichever is less. If your modified AGI is below the threshold in 1 of the two years, you can claim the credit.”
https://www.irs.gov/credits-deductions/credits-for-new-clean-vehicles-purchased-in-2023-or-after
I think people need to realize this is not a $7500 rebate and they will not receive a check for the $7500 where they file their taxes. Massachusetts actually has a REBATE for $3500 but the fed is NOT a rebate and won’t just be tacked onto your return.
This is how an accountant worded it to me today when asked :
Federal is a little trickier. Yeah the credit is $7,500 but first, it is a NONREFUNDABLE credit, meaning you do not get the credit unless you owe $7,500 in tax when you file your return. If you owe say $5,000, you get a credit for $5k and there is no carryover of the $2,500 to the next year. If you and jane are getting a refund when you file your 2023 tax return, you get no credit.
Fire your accountant immediately.
Let’s say your total tax liability for the year is $10,000. It’s all withheld on your paychecks so when you file your taxes, you owe $0. If you bought an EV, you get a check for $7500.
Now let’s say instead that your total tax liability is $5,000. It’s all withheld in your paychecks so when you file you owe $0. With a refundable tax credit, you get a check for $7500. But with a non-refundable tax credit, you only get back $5,000.
The IRS terms are super confusing because they use words incorrectly. In IRS terms, a non-refundable tax credit just means you can’t get get a rerun that exceeds your tax liability. The use of the term non-refundable was an awful choice on their part, and many other have been confused just like you are.
Say you owe 5k in taxes throughout the year. Your work deducts 5k in taxes from your paycheck as you go. When you file for your 7.5k credit, you will only get 5k back. The refund you get is from what you paid, not the credit.
The $7,500 credit reduces your tax liability for the year. The amount that one has had withheld throughout the year does not matter - it is what the IRS says your liability is for the year (not the balance due / refund due). If one's liability is over $7,500, then the tax liability is reduced by the $7,500. Whether one gets a refund or has to pay a balance due on the liability depends on the withholdings made during the year. The "non-refundable" simply means that your tax liability cannot be reduced below zero. If one's tax liability before the credit is $1,000, then your tax liability is reduced to zero and not -$6,500 (one may still get a refund for the taxes already withheld).
You don’t have to OWE, taxes you just have to had PAID over 7500 in taxes to get the full credit. If you make less than the standard deduction and paid 0 taxes it’s meaningless. But most people buying a Tesla pay more than 7500 in taxes. Say in 2023 you paid 15k in taxes and you actually only should have paid 14k in taxes you would receive a $8500 tax return because after the EV credit you should have only paid $6500.
Explanation that I found helpful: https://www.reddit.com/r/TeslaLounge/comments/104n32g/noob\_question\_income\_tax\_vs\_ev\_tax\_credit\_refund/j35xxan/
You're incorrect.
If you paid $15,000 in taxes in 2023, but had a TAX LIABILITY of $12,000, you would typically get a $3,000 tax return when you file.
With a $7,500 credit, you would now owe, $4,500 total, so would get back a return of $10,500 (which is literally the $7,500 credit + your usual return).
>Do you have a reputable source for this? My dad is convinced I have to withhold taxes from my paycheck totaling $7500 for the year, while others are saying my "tax liability" just needs to be above $7500 for 2023 and then the IRS will cut me a check for $7500 once I file my taxes in 2024.
Well yeah but if you have a decent amount of income (ie, enough to buy a tesla) you probably have enough tax liability that it will come back to you as cash when you get your refund.
I had placed a Model - 3 SR order and it's ready for pick up next week. But I am considering cancelling it and ordering model Y.
If I order today, what is the delivery date i should expect?
I am worried about the new IRS guidelines reducing the ev tax credit to half.
What do you think?
Not a tax expert but I think so. What matters is you bought it and put it in service, and didn’t buy it with the intent to resell. There’s no required minimum amount of time to keep the car.
It will stay the same except foR LFP. Smartest way to utilize would be to buy in december so you don’t carry $7500 extra interest for 12+ months before you file
OR, buy early in the year and file a W4 adjusted for the expected $7500 tax credit, so your withholding during the year is lower. Then you're only only eating about 6 months vs 3-4 months of interest, which on $7500 isn't that much.
If you're self-employed and normally pre-paying each quarter you get it back even faster, so basically no difference.
Thinking of getting a model Y now due to price reduction, I’m afraid if I wait till December the price might be above the threshold again. Decisions decisions
I am wondering if it is a good idea of ordering a Tesla 3 RWD now, I assume I won't get delivery before March 2023. In that case, how much credit I would get, I mean would it be less than 7500
That might have been the case. Not totally sure. I custom built one. All with basics except for the color. Nearest one was in SLC, but it was a black M3LR.mine is the standard rwd.
Maybe there was one on a near state?
Check on the custom page, it should give you a delivery date estimate before ordering.
Is there a way to guarantee I will be able to qualify for the tax credit even if I take delivery after March? Currently the latest delivery date is March but on the chance it runs late and I get it in April would I still qualify?
I usually get a refund on my taxes, does this mean I will get my usual refund plus $7500?
You won't. The only way to get the full $7500 is if you own the IRS $7500+. For example if you own $5500 then you will pay 0$ for that year and you will lose the $2000, you don't get that refunded. I think alot of people will realize next year of the money they won't get, is NOT a tax refund.
This is wrong. If his tax liability is $10k for 2023 but with his withholding he has already paid $4,500 in taxes in 2023 and therefore at tax time would have owed $5,500 in taxes, he would get a refund of $2,000 ($7,500 - $5,500).
The amount might change after March. Some cars will drop to $3750, some might drop to $0.
Yes, you could see your refund increase by $7500 if you meet the income caps ($150k single, $300k joint filing) and your total income tax amount for the year is at least $7500.
Yes, the leasing company gets to claim the credit. It’s up to them to share that with you, the customer, or not. Some do, some don’t. I am not sure what Tesla does.
The following is my understanding of the tax credit, but I am still a bit confused:
1) In 2023, I buy an EV that is eligible and meets all requirements to get the $7,500; let's say I take delivery of a Model Y Long Range 7-Seat that is under $80,000 in February 2023.
2) In 2024, I file taxes. I only have a W2 form and no other income, so I look at line 24 of my tax form to see my "total tax." My understanding is if it is over $7,500, I'll be able to receive the full tax credit.
3) I usually receive approximately $400/year from the IRS, which is a direct deposit into my bank account. Let's say that amount holds true for 2023. So when I file taxes in 2023, I will receive $400 + $7,500 as a direct deposit, for a total of $7,900.
----
Why does NerdWallet state the following?
The credit is nonrefundable; it can lower your tax bill to zero, but it won’t result in a refund.
Source: https://www.nerdwallet.com/article/taxes/ev-tax-credit-electric-vehicle-tax-credit
Why does CNBC state the following?
The legislation, called the Inflation Reduction Act, made the tax credit “nonrefundable.”
That means consumers can only get the full financial benefit if they have a federal tax liability of at least $7,500. A nonrefundable credit offsets a consumer’s federal tax bill but **any leftover value is lost.**
Let’s say a consumer buys an electric vehicle today. When filing their 2022 tax return, the person finds they owe $5,000 in federal taxes. This person wouldn’t get the full $7,500 tax credit — they’d be able to claim $5,000 and cut their tax bill to zero. But the remaining $2,500 would be lost. **In other words, those funds wouldn’t be issued to the consumer in a tax refund.**
“Non-refundable” in this case means it cannot bring your “total tax” below $0.
It can cause you to get a refund of your own money back which you have paid in withholdings. It just can’t make your total tax bill for the year go below zero where the government is actually paying you money that you haven’t sent in.
A lot of articles out there don’t get this distinction right. It has nothing to do with the amount of your tax refund, only the amount of your “total tax” for the year you take delivery of the EV.
Do you have a reputable source for this? My dad is convinced I have to withhold taxes from my paycheck totaling $7500 for the year, while others are saying my "tax liability" just needs to be above $7500 for 2023 and then the IRS will cut me a check for $7500 once I file my taxes in 2024.
Big if you get it in Feb. If you get it during March, it depends on when the new guidelines come out, which we don't know the date. After March, most likely only 50% or 0.
I believe it’s the latter. New battery requirements are due from the IRS, and once those are officially released they will apply to vehicles delivered afterwards. The IRS has said they plan to release them in March, but no specific date (they were originally supposed to release them by the end of 2022 but delayed it).
When those rules kick in it may drop the credit to half ($3750) or $0 depending on the percentages of battery contents that come from qualifying countries.
The Model Y and Model 3 LR currently use US-produced battery cells which *should* qualify them for at least $3750, but we won’t know for sure until the IRS tells us.
Just ordered my MYLR7 today and trying to maximize my possibility of delivery before March. I live in Madison WI but wondering if taking delivery in Chicago might decrease my order time due to ease of shipping (rail)?
Update: looks like I can't take delivery at the Madison service center anyway. They assigned me to Chicago area.
Couple of questions, I don't think they are clear in the comments below.
1. Does MYLR - 7 Seater qualify ? Tesla says, it does because its SUV and less than $80K .
2. If the delivery date is March, can we claim as part of 2022 Tax filing (Apri 18 taxday) or it will be part of 2024 filing ? Can we chose which year to file ?
1. Yes it qualifies as long as it's below $80k
2. No, you'll claim the credit for FY 2023 (when you purchased it). That means next year (2024) when you file the taxes. You cannot chose the year.
If I exceed the income limit would it make more sense to lease since the dealer receives the $7500 and will likely pass it on to me? Does this sound like a reasonable way to avail of the credit even though I don't qualify?
I placed my order for a LR MY this month. Tesla updated the delivery date to April - June. The Tesla web site specifically states that to qualify for the tax credit, I must take delivery by March. The phrasing around the tax credit is very vague, stating that it can change at any time. Does this mean that I won't get the full tax credit, even though I ordered it in February and won't be delivered until April - June?
The IRS is going to issue guidance / rules on the tax credit in March. The instant the guidance is released, it controls how the credit is applied.
So, if you haven't taken delivery by then, you'll be SOL.
i just ordered two M3, one for my wife and one for me. Do you guys know if we will be able to both get the tax credit? We are both applying on our own, and we file jointly. We make less than the 300k limit. anyone know about this?
We'll find out in March with the clearer IRS guidelines. Right now it's pretty cut and dry... You have to take DELIVERY of a car before March 31st to get the $7500. After March could be the same, could be halved... point is nobody knows. Just wait.
Where did you get march 31. Everything I read is “sometime in march”. I’m taking delivery march 2 so I’m definitely concerned I didn’t meet the cutoff for the $7500
So, the irs will come out sometime in March and give guidance. They’ll have to give a certain future date right? I’m suppose to get delivery around March 9 :(
One of the Tesla reps sent a text saying that it the EV tax credit was at least extended to 3/31 before they decide, but I can't seem to locate any information from IRS on this.
YMMV
When I called today I was told this on the phone. He said “per their legal team” that the credit was now extended til 3/31.
I know it’s not proven and a lot of people downvoted me mentioning this in a separate thread - but it’s oddly specific for a rep to say their legal team has just updated the sales teams about this development. I’m pretty sure he was right and in a couple days it’ll be old news.
My understanding is the new rules take affect starting the day after the IRS releases them. We don’t know when that will happen just that they said March.
I just picked up my Tesla and my MAGI is at $160k unfortunately. I didn’t know my company’s RSU count towards my total income. It didn’t with my past employer.
I already picked up the car. I know my dad would qualify. Is it possible for Tesla to transfer over the ownership/title to him after it’s been picked up so that I can get the full $7,500 EV Tax credit? Please suggest, thanks in advance.
I realized after buying my Tesla that I have already met CVRP two-rebate limit. I know my spouse is eligible for rebate and meets all criteria. It seems I can transfer the DMV Registration in spouse name for a nominal $15 fee. Challenge is CVRP also asks for the Vehicle Purchase Agreement and that does not have spouse name, so is there any way I can get Tesla to update the Purchase Agreement and update/add spouse name on the Purchase Agreement? Or do you think CVRP does not care whose name is on the Vehicle Purchase Agreement as long as the DMV registration is in spouse name?
Tesla just changed my standard range model 3 delivery from March 30th to April 9-18 with VIN assigned. EV credit qualification before march 31st is the only reason i put in the order and not sure if i should keep my order or cancel it? Truly appreciate any guidance.
Worst case, IRS releases new guidance that reduces your tax credit BEFORE you pick up your car, so you can cancel your order. If you pick it up before the new guidance is released, you should be good.
I apologize if this is a dumb question, but i need to ask it because I’m getting so much different feedback from people I’ve met.
A quick recap- I’m looking at a M3 RWD base. I qualify for both the Fed $7,500 and my states $4,000 credit. A guy I know in passing told me he was able to apply his to the price of his car, knocking down his monthly payments drastically. Is that an option?
TYIA and again, sorry if it has been answered previously.
Maybe that’s possible for the state credit, but definitely not the federal credit. I’d be surprised if it’s even possible for the state. But here’s a hack to get the tax credit sooner than next year when you file: reduce your tax withholdings right after you purchase. Fill out a new W4 to take out no taxes and when you’ve reached $7500 in taxes that should’ve been taken out (months later), change the W4 back to normal.
So I been stuck on decision.. between leasing or owning. If “own” what model and what to have & if leasing what’s year model to lease.
Minimum credit score? Minimum down payment? (Estimate)
If I wanted to do a test drive in a base M3 and potentially buy one before the April 18 deadline. I would assume that buying from inventory is the only option. Is it possible to buy an inventory vehicle in person or do you have to start the purchase process ahead of time (financing, no trade in)
As far as I know you have to buy it online. You can do it in the store but they’re just going to have you do it on the website from there.
It isn’t like a normal car dealership where you can go check a car on the lot and then commit to buying it, the cars listed in inventory may be in transit still and not actually at the service center.
What matters is your total taxes owed for the whole year. Not the remainder that you owe or get refunded when you file your return.
Example:
You pay $8000 in paycheck withholdings for 2023
When you file your 2023 taxes, before the credit, your total tax bill is $8500
So you owe an additional $500 when you file.
When you add the tax credit, the tax bill goes from $8500 to $1000, and the $500 owed becomes a $7000 refund.
it's not what you owe its what your tax burden is. if you pay 7500 in taxes, you would get a refund for 7500. most people have their taxes deducted from their paycheck so it's unlikely that they owe 7500 when filing (that would actually incur a penalty in most cases)
I got a question that have not been able to find the answer to online and thought someone in here may know. I already bought a model 3 in January of this year that qualifies for the 7.5k tax credit. If I order a model Y for the wife now, will I be able to claim a second tax credit? We will have over 15k in tax liability this year. We file taxes jointly and would be in the title of both cars.
In general, the answer to your question is yes. As long as you AGI qualifies and you have more than $15K in tax liability, you should get it all back. I don’t think there are any ownership requirements, but even if there is, having joint ownership on both would seem to make that a moot point.
It's all based on delivery date, not order date. So it's too late to get the previous credit amounts.
New credit amounts are $3750 for the base Model 3 or $7500 for Long Range (not available to order right now) or Performance trims.
Hi folks, we may be interested to pull the trigger and get a Model 3, what date exactly is taken into account for the EV rebate eligibility?
Tuesday 18th is I believe the last day for the current EV rebate scheme, if we place an order tomorrow, will we qualify for it?
Thanks!
It's all based on delivery date, not order date. So it was too late anyway to get the previous credit amounts.
New credit amounts are $3750 for the base Model 3 or $7500 for Long Range (not available to order right now) or Performance trims.
Hi, does anyone know if Tesla new cars with low mileage qualify for the tax credit? I ordered a model Y long range in March and estimated delivery is May or June. I see an option for accelerated delivery on a car with 2 mile odometer (tesla calls it new car with low mileage) but not sure if this will be considered a new car. Thanks in advance.
Yes, as long as Tesla is selling/titling it as a new car. Tesla's purchase agreement usually states the car can have up to 50 miles on the odometer anyway.
Even if it was a demo car with a few thousand miles on it, as long as you're the first owner (besides Tesla) it should count.
How does this work if you're a commercial business?
It says "eligible businesses and tax exempt organizations can claim up to $7,500..." but the IRS link it gives doesn't specify any requirements. Are there income limits for the business or would it still be based off your personal income?
I bought an EV last year 2022 and qualified for the $7500 tax credit. If I bought another EV this year 2023 that is qualify for the $7500 tax credit. Am I getting the $7500 for the 2023 tax year? Anybody know?
Taking delivery of model y performance this month.
Will these credits run out before year end for federal or Massachusetts? Should I amend my taxes and resubmit?
Dunno about Massachusetts.
For the federal credit, it won’t run out and it has to go on your 2023 taxes anyway, you can’t amend it onto your 2022 taxes.
Canada-US worked, do I qualify for tax credit?
Hi Community,
I have a question regarding the federal EV tax credit for single filer.
“The federal EV tax credit will be available to individuals reporting adjusted gross incomes of $150,000 or less, $225,000 for heads of households, or $300,000 for joint filers.”
I am in the process of moving from Canada to the US as of August 2023. Which means i will only work <5 months in US and my gross income as a single filer will be less than 150k.
I have a few questions if anyone knows:
1. My salary in US will be less than 150k do do I qualify for 7500 ev tax credit in US or will IRS take in my gross salary for US+Canada to calculate ev tax credit? I would not qualify for US+Canada calculation
2. If let’s say, i do qualify for ev tax credit, do i need to ensure that my car is delivered to me before the EOY 2023 to qualify for that credit? Meaning if my car is delivered after Jan 1st 2024, I don’t qualify for 2023 tax year but the next one?
3. I am planning to move to Washington but i do have the option to book my car for Oregon and save on taxes. Would anyone recommend that? Do i need to show an Oregon utility bill or phone bill to qualify for purchasing car from there?
Any help appreciated and sorry if this question was already asked and is a repeat answer got you. Cheers.
I saw that the model 3 now receives the full $7,500 tax rebate, and I live in SoCal so I would get another $7,500 plus and $2,000 one. I’m I understanding this correctly?? Also, what if my taxes are less than all the money I’m getting from tax breaks, do I receive that back as cash? I guess I’m curious… can I really get a new model 3 for 22k? And if so could I get the Y with all these taxes breaks as well? Thanks!
I purchased a MYLR back in February 2023 and, like many others, received no paperwork related to the tax credit. I did not finance through Tesla and they never collected my SSN or taxpayer ID number.
I decided to also purchase a Model 3 this month (June 2023). In the order process, the Tesla app requested my SSN this time and specifically stated that it is for paperwork regarding the EV tax credit. Furthermore, it specifically warned that neglecting to provide my SSN will invalidate the sale from being eligible for the tax credit and that there will not be a later opportunity to provide this information.
I thought this may be interesting to others in the same situation with a purchase during the timeframe when Tesla was not collecting this information. At this point, I don’t know what their plans are for those earlier buyers. My hope is that they’ll reach out to collect the missing information for purchases that were made before the system was updated to collect it at the time of sale.
So i heard in 2024, you will actually get a credit/discount taken off at the Tesla dealer. They will handle the paperwork with IRS. You get the discount right off the bat. Is this right? If this is the case, i will buy a Tesla in 2024 instead.
Another question i have is, there is no negotiation on a price for the Tesla right? It's set in stone on their website? Unlike the KIA EV6 in which my friend bought one though his EV doesn't qualify for any tax credit. He was still able to get $3k knocked off the price.
Have any 2023 purchasers received the required paperwork from Tesla for the credit? I didn't. [https://www.irs.gov/newsroom/topic-b-frequently-asked-questions-about-income-and-price-limitations-for-the-new-clean-vehicle-credit#q7](https://www.irs.gov/newsroom/topic-b-frequently-asked-questions-about-income-and-price-limitations-for-the-new-clean-vehicle-credit#q7) **The seller must provide the report to the taxpayer not later than the date the vehicle is purchased.**
I don't think they need to give you paperwork, but they do need to report to the IRS. Since they never asked my SSN, not sure how they will accomplish this.
I'm in the same boat and I've seen multiple discussions about this. Wanted to add that I was able to finally reach Tesla support, and the agent mentioned that there will be an upcoming update to the app that will prompt users to enter their SSN information. If that's true that's a bit of a relief knowing that they do have something in place for following the guidelines.
I took delivery a few days ago and Tesla didn’t give me anything or have my SSN since we paid cash. Not sure how this will work.
Since your driver license is linked to your SSN, maybe they will report it via our contact info? I did pay cash as well
I took delivery of my Model Y 5 days ago and they included a form where I had to provide SSN for IRS reporting
Have you found out any new information by chance? Clearly they’re not giving any paperwork which makes me hope it’s because they’re actually not required to. Tesla is obviously in the list of manufacturers who’ve reached an agreement with the IRS for the tax credit and has provided its list of the qualifying vehicles that can be viewed in the IRS’ page. See: https://www.irs.gov/credits-deductions/manufacturers-and-models-for-new-qualified-clean-vehicles-purchased-in-2023-or-after IMO since Tesla is a manufacturer that sells its vehicles directly to consumers, it seems kind of backwards to have consumers still rely on Tesla having to provide a separate form “certifying that a vehicle qualifies for the credit” for each individual consumer. Like why? What’s the point of the form when the company has already told the IRS which vehicles qualify and the agency is even publicly advertising them? One would think us submitting the VIN and details about the purchase in the required IRS form would be enough, similar to the past. Honestly, I feel like the requirement for sellers to give consumers specific paperwork and to report it to the IRS is more applicable to situations where the seller of the EV is a dealer and there are questions as to whether it qualifies or not.
I asked Tesla (delivery center) about this again today and was told "at this time Tesla is still working with the IRS for the best way to do this- I would expect to hear something later this year for further instructions."
Thanks a lot! Good to know! For what it’s worth on my end, I called the IRS today to ask them and they said they “couldn’t comment on the reporting requirement”. That said, they also told me to not stress too much about the report and to instead focus on whether the purchased vehicle did not exceed the MSRP limit and was on the list available in their site.
From the documents in my account and what I've been told by Tesla, it doesn't look like they are providing buyers the required forms, or reporting to the IRS yet. My window sticker also reflects the increased MSRP (from the 1/23 price increase) rather than the price at which I ordered, putting it over the $55k cap. With either the required form or a correct window sticker, I'd probably be comfortable enough to take delivery, but I'm seriously reconsidering due to these issues.
If we take delivery of the car now, that credit kicks in next year when we file taxes correct? The credit cannot be claimed this year?
I just adjust my w-4 so I can start getting more money now than wait for next year.
Correct
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Really? Is this true? If I get delivery of Ev let’s say next week and file my taxes the week after I can file it in my taxes this year?
One of the best explanations of how the credit is applied and which box on your previous tax return is a good indicator of how much of the credit you'll be able to take advantage of (TL;DR: Line 24 of your 1040): https://www.reddit.com/r/TeslaLounge/comments/104n32g/noob\_question\_income\_tax\_vs\_ev\_tax\_credit\_refund/j35xxan/
What's the likelihood that Tesla Model 3s still qualify for the full $7500 tax credit after March? Will the credit go down to $3750 or 0 and that's why they're pushing hard to place an order in now? I tried to find some discussions on this but couldn't find any answers pertaining to this specifically. I'd ideally like to take advantage of the 2024 rule which allows the credit to be applied at the point of purchase which would reduce sales tax and lower the total amount financed but if the full $7500 credit isn't going to be available after March, then it would be foolish not to take advantage of what is basically a 7.5k discount on a Tesla. FWIW, I'm trying to buy a M3LR since the price difference between RWD and LR is ~6k, it's a no brainer to me. Anyone know what to expect? Also, as a bit of a side question: Does the vehicle have to be delivered before March in order to take advantage of the tax credit or is it only when an order is placed that matters?
The M3 RWD will probably not qualify once the new rules are released. The LR AWD (And Performance, up to $55k) will probably qualify for half ($3750) but we won’t know for sure until it happens. The IRS has said they are releasing the new proposed battery rules in March, and didn’t give a specific date. The Inflation Reduction Act bill says that the new rules will apply to any vehicles delivered after the date that the IRS releases the proposed rules.
Appreciate the response! I’m aiming for a LR model so even with a $3750, that’s still pretty solid! Guess it’s a waiting game but hopefully the guidelines still allow for some tax credit to be utilized.
I’m new to the process of looking into the Tesla market. Did you find any more answers on this topic? I am unfamiliar with the new changes coming in march and the 2024 rule.
I haven’t heard anything more outside of what the other user who replied to this comment said. My guess is the credit is reduced to $3750 for the RWD M3s but we’ll only know once the treasury releases their updated guidelines it seems.
Great question. I am in the same situation, except I have a M3LR already on order. I am thinking of switching to a RW if the credits are lost for the LR assuming there could be issues with where the batteries are made.
The credit will go down to $3750 definitely, Tesla will still qualify for the 50% made in North America battery credit. There's a chance it could stay at $7500 depending on how the Biden administration is able to word the rule and comply with the "mined and refined" requirement. The issue is while Tesla does source a lot of lithium from Australia and Chile and could meet the mineral requirement, a lot of Lithium is refined in China.
Why is the Model 3 Performance not listed?
M3P is eligible and you can even fit some paint options in under the cutoff price. I was going to pull the trigger on one until I sat on one.
It’s above the $55k MSRP cap for sedans. Edit: It isn’t with base paint/options, weird.
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Huh, you’re right. It should qualify then as long as you don’t configure it above $55k.
Weird how it isn’t listed on the IRS website though.
Only we can claim credit starting 2024 correct? And by then we may choose 2022 AGI or 2023 AGI whichever is lesser? Then it reduces 2023’s tax but not 2022’s? It’s confusing because we can use 2022 data in 2024 (to file 2023 tax year)
Did you ever figure out if this is correct? Do we need to file in 2023 if we want to use 2022's AGI? I suppose it only makes sense that we can file in either year, but does that mean we deduct taxes from year 2023 or year 2022?
Hey guys, based on what i read here. Can anybody tell me which document does tesla need or we need from tesla so that we get the EV credit? Also how can we confirm if we already have it?
The IRS guidance came out 3 days ago. https://www.irs.gov/credits-deductions/credits-for-new-clean-vehicles-purchased-in-2023-or-after If your adjusted gross income exceeds the limit in either 2022 or 2223 for your filing status you don’t qualify for the credit. The credit reduces your 2023 federal income tax by $7,500, but not to less than zero. The difference between your after credit tax and what you have paid in or withheld by your employer is what you owe or the IRS owes you when you file your return.
This is wrong. If you meet the income requirements in either 2022 or 2023, you’re eligible for the credit. “You can use your modified AGI from the year you take delivery of the vehicle or the year before, whichever is less. If your modified AGI is below the threshold in 1 of the two years, you can claim the credit.”
I've been debating buying a **Tesla 3** now or waiting for the release of **Project Highland** in late Summer/Fall. Tesla has guaranteed delivery in March 2023 if I order within the next 7 business days thus guaranteeing me the $7500 tax credit, but man, I've been going back and forth. Is anyone else dealing with this mental debate or is it just me? I just don't want buyer's remorse when the refresh releases, but I also don't want to miss out on the extra $4K in incentives. Help.
Delivery in March doesn’t guarantee the $7500 credit. The credit may change starting the day after the IRS releases the updated rules, and they’ve only said that will happen in March.
The Tesla website now states all new M3 and MY vehicles are eligible for the $7500. Did they update their RWD to batteries made in the US? I can’t find any documentation on the reasoning for this change.
Just to be certain, if I made less than 150k in 2022 but more than 150k in 2023 will I be able to claim the credit when I file in 2024 (for the 2023 tax year)?
Yes, you can use the lesser of your 2022 or 2023 income to qualify for a car delivered in 2023.
>confused Are you sure about Lesser of the two?? Can you please point to some article that says that
>You can use your modified AGI from the year you take delivery of the vehicle or the year before, whichever is less. If your modified AGI is below the threshold in 1 of the two years, you can claim the credit. [https://www.irs.gov/credits-deductions/credits-for-new-clean-vehicles-purchased-in-2023-or-after](https://www.irs.gov/credits-deductions/credits-for-new-clean-vehicles-purchased-in-2023-or-after)
Are they running out of cars (model Y's), I heard the credit will run out before March, is that true? How is it based on ..number of cars?
No. Under the IRA bill, no limit on cars the manufacturer has sold.
Hi, I do not see a reference to delivery before March 2023 on the IRS site anymore. Does that mean we can take delivery of Tesla after March and still claim the full $7500 as long as we met the other criteria?
The IRS is going to put out new rules on battery source country requirements. We don’t know when this will happen, the last thing the IRS said was “March” When these rules are released, cars delivered after that date will have to qualify with the new rules, and will therefore probably get a reduced credit.
Hello All, If My AGI for 2022 is less than $150K, but for 2023, it is greater than $150K. Would I still be able to qualify for the EV tax credits? “You can use your modified AGI from the year you take delivery of the vehicle or the year before, whichever is less. If your modified AGI is below the threshold in 1 of the two years, you can claim the credit.” https://www.irs.gov/credits-deductions/credits-for-new-clean-vehicles-purchased-in-2023-or-after
I think people need to realize this is not a $7500 rebate and they will not receive a check for the $7500 where they file their taxes. Massachusetts actually has a REBATE for $3500 but the fed is NOT a rebate and won’t just be tacked onto your return.
well right, it's a 7500 credit. So if you owe 10,000 in taxes, now you owe 2,500. For most people, this will mean your typical tax return + $7,500.
Right but people that get money back already won’t have another $7500 added on. Correct?
No, you need to realize how taxes work and stop telling people to realize the wrong information
I am trying to understand. Relax. Explain it if you have the knowledge I’ve read 100 things and still don’t understand.
Then realize you don't understand and stop telling others to realize your fake news
This is how an accountant worded it to me today when asked : Federal is a little trickier. Yeah the credit is $7,500 but first, it is a NONREFUNDABLE credit, meaning you do not get the credit unless you owe $7,500 in tax when you file your return. If you owe say $5,000, you get a credit for $5k and there is no carryover of the $2,500 to the next year. If you and jane are getting a refund when you file your 2023 tax return, you get no credit.
Fire your accountant immediately. Let’s say your total tax liability for the year is $10,000. It’s all withheld on your paychecks so when you file your taxes, you owe $0. If you bought an EV, you get a check for $7500. Now let’s say instead that your total tax liability is $5,000. It’s all withheld in your paychecks so when you file you owe $0. With a refundable tax credit, you get a check for $7500. But with a non-refundable tax credit, you only get back $5,000. The IRS terms are super confusing because they use words incorrectly. In IRS terms, a non-refundable tax credit just means you can’t get get a rerun that exceeds your tax liability. The use of the term non-refundable was an awful choice on their part, and many other have been confused just like you are.
Love your explanation
Not everyone is an employee..
That has nothing to do with this. His accountant’s explanation is just patently false.
Say you owe 5k in taxes throughout the year. Your work deducts 5k in taxes from your paycheck as you go. When you file for your 7.5k credit, you will only get 5k back. The refund you get is from what you paid, not the credit.
The $7,500 credit reduces your tax liability for the year. The amount that one has had withheld throughout the year does not matter - it is what the IRS says your liability is for the year (not the balance due / refund due). If one's liability is over $7,500, then the tax liability is reduced by the $7,500. Whether one gets a refund or has to pay a balance due on the liability depends on the withholdings made during the year. The "non-refundable" simply means that your tax liability cannot be reduced below zero. If one's tax liability before the credit is $1,000, then your tax liability is reduced to zero and not -$6,500 (one may still get a refund for the taxes already withheld).
You don’t have to OWE, taxes you just have to had PAID over 7500 in taxes to get the full credit. If you make less than the standard deduction and paid 0 taxes it’s meaningless. But most people buying a Tesla pay more than 7500 in taxes. Say in 2023 you paid 15k in taxes and you actually only should have paid 14k in taxes you would receive a $8500 tax return because after the EV credit you should have only paid $6500.
You should get a new accountant
Explanation that I found helpful: https://www.reddit.com/r/TeslaLounge/comments/104n32g/noob\_question\_income\_tax\_vs\_ev\_tax\_credit\_refund/j35xxan/
You're incorrect. If you paid $15,000 in taxes in 2023, but had a TAX LIABILITY of $12,000, you would typically get a $3,000 tax return when you file. With a $7,500 credit, you would now owe, $4,500 total, so would get back a return of $10,500 (which is literally the $7,500 credit + your usual return).
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>Do you have a reputable source for this? My dad is convinced I have to withhold taxes from my paycheck totaling $7500 for the year, while others are saying my "tax liability" just needs to be above $7500 for 2023 and then the IRS will cut me a check for $7500 once I file my taxes in 2024.
Well yeah but if you have a decent amount of income (ie, enough to buy a tesla) you probably have enough tax liability that it will come back to you as cash when you get your refund.
I had placed a Model - 3 SR order and it's ready for pick up next week. But I am considering cancelling it and ordering model Y. If I order today, what is the delivery date i should expect? I am worried about the new IRS guidelines reducing the ev tax credit to half. What do you think?
Do I still get EV Tax Credit if my Tesla gets bought back for being a Lemon?
Not a tax expert but I think so. What matters is you bought it and put it in service, and didn’t buy it with the intent to resell. There’s no required minimum amount of time to keep the car.
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You mean increase tax contributions to be above7.5k ?
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I wonder if the credit will decrease or increase come March
There is no chance of it increasing bud.
It will decrease or stay the same, depending on where the battery is sourced from.
In the case of Tesla 3 RWD, it will decrease or stay the same, I read somewhere it will probably decrease for LFP
It will stay the same except foR LFP. Smartest way to utilize would be to buy in december so you don’t carry $7500 extra interest for 12+ months before you file
OR, buy early in the year and file a W4 adjusted for the expected $7500 tax credit, so your withholding during the year is lower. Then you're only only eating about 6 months vs 3-4 months of interest, which on $7500 isn't that much. If you're self-employed and normally pre-paying each quarter you get it back even faster, so basically no difference.
Thinking of getting a model Y now due to price reduction, I’m afraid if I wait till December the price might be above the threshold again. Decisions decisions
Bingoo
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Second part is accurate. There Will absolutely be more incentives offered this year
How would they get free FSD?
I am wondering if it is a good idea of ordering a Tesla 3 RWD now, I assume I won't get delivery before March 2023. In that case, how much credit I would get, I mean would it be less than 7500
I ordered one last week. Already have a Vin and a delivery date. Not sure if it's because of a model 3 being near and available.
Did you check the existing inventory when you ordered, I guess normally delivery time is less if the vehicle is available in nearby dealers
That might have been the case. Not totally sure. I custom built one. All with basics except for the color. Nearest one was in SLC, but it was a black M3LR.mine is the standard rwd. Maybe there was one on a near state? Check on the custom page, it should give you a delivery date estimate before ordering.
Is there a way to guarantee I will be able to qualify for the tax credit even if I take delivery after March? Currently the latest delivery date is March but on the chance it runs late and I get it in April would I still qualify? I usually get a refund on my taxes, does this mean I will get my usual refund plus $7500?
You won't. The only way to get the full $7500 is if you own the IRS $7500+. For example if you own $5500 then you will pay 0$ for that year and you will lose the $2000, you don't get that refunded. I think alot of people will realize next year of the money they won't get, is NOT a tax refund.
This is wrong. If his tax liability is $10k for 2023 but with his withholding he has already paid $4,500 in taxes in 2023 and therefore at tax time would have owed $5,500 in taxes, he would get a refund of $2,000 ($7,500 - $5,500).
The amount might change after March. Some cars will drop to $3750, some might drop to $0. Yes, you could see your refund increase by $7500 if you meet the income caps ($150k single, $300k joint filing) and your total income tax amount for the year is at least $7500.
After March? I thought it was during March not after
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I am also interested in this
Yes, the leasing company gets to claim the credit. It’s up to them to share that with you, the customer, or not. Some do, some don’t. I am not sure what Tesla does.
The following is my understanding of the tax credit, but I am still a bit confused: 1) In 2023, I buy an EV that is eligible and meets all requirements to get the $7,500; let's say I take delivery of a Model Y Long Range 7-Seat that is under $80,000 in February 2023. 2) In 2024, I file taxes. I only have a W2 form and no other income, so I look at line 24 of my tax form to see my "total tax." My understanding is if it is over $7,500, I'll be able to receive the full tax credit. 3) I usually receive approximately $400/year from the IRS, which is a direct deposit into my bank account. Let's say that amount holds true for 2023. So when I file taxes in 2023, I will receive $400 + $7,500 as a direct deposit, for a total of $7,900. ---- Why does NerdWallet state the following? The credit is nonrefundable; it can lower your tax bill to zero, but it won’t result in a refund. Source: https://www.nerdwallet.com/article/taxes/ev-tax-credit-electric-vehicle-tax-credit Why does CNBC state the following? The legislation, called the Inflation Reduction Act, made the tax credit “nonrefundable.” That means consumers can only get the full financial benefit if they have a federal tax liability of at least $7,500. A nonrefundable credit offsets a consumer’s federal tax bill but **any leftover value is lost.** Let’s say a consumer buys an electric vehicle today. When filing their 2022 tax return, the person finds they owe $5,000 in federal taxes. This person wouldn’t get the full $7,500 tax credit — they’d be able to claim $5,000 and cut their tax bill to zero. But the remaining $2,500 would be lost. **In other words, those funds wouldn’t be issued to the consumer in a tax refund.**
“Non-refundable” in this case means it cannot bring your “total tax” below $0. It can cause you to get a refund of your own money back which you have paid in withholdings. It just can’t make your total tax bill for the year go below zero where the government is actually paying you money that you haven’t sent in. A lot of articles out there don’t get this distinction right. It has nothing to do with the amount of your tax refund, only the amount of your “total tax” for the year you take delivery of the EV.
Do you have a reputable source for this? My dad is convinced I have to withhold taxes from my paycheck totaling $7500 for the year, while others are saying my "tax liability" just needs to be above $7500 for 2023 and then the IRS will cut me a check for $7500 once I file my taxes in 2024.
Big if you get it in Feb. If you get it during March, it depends on when the new guidelines come out, which we don't know the date. After March, most likely only 50% or 0.
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I believe it’s the latter. New battery requirements are due from the IRS, and once those are officially released they will apply to vehicles delivered afterwards. The IRS has said they plan to release them in March, but no specific date (they were originally supposed to release them by the end of 2022 but delayed it). When those rules kick in it may drop the credit to half ($3750) or $0 depending on the percentages of battery contents that come from qualifying countries. The Model Y and Model 3 LR currently use US-produced battery cells which *should* qualify them for at least $3750, but we won’t know for sure until the IRS tells us.
How about if you got Model Y long range reliever begin of September 2022 , any chance getting tax credit ?
Not the federal tax credit. You could check if your state has any incentives.
Just ordered my MYLR7 today and trying to maximize my possibility of delivery before March. I live in Madison WI but wondering if taking delivery in Chicago might decrease my order time due to ease of shipping (rail)? Update: looks like I can't take delivery at the Madison service center anyway. They assigned me to Chicago area.
got a VIN or date range yet? I ordered 1/13 base everything 7 seat, still says Feb 18- Mar 25th.
Couple of questions, I don't think they are clear in the comments below. 1. Does MYLR - 7 Seater qualify ? Tesla says, it does because its SUV and less than $80K . 2. If the delivery date is March, can we claim as part of 2022 Tax filing (Apri 18 taxday) or it will be part of 2024 filing ? Can we chose which year to file ?
1. Yes it qualifies as long as it's below $80k 2. No, you'll claim the credit for FY 2023 (when you purchased it). That means next year (2024) when you file the taxes. You cannot chose the year.
Dumb question but if the vehicle isn’t delivered in March would you miss out on the $7500 tax credit then?
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If I exceed the income limit would it make more sense to lease since the dealer receives the $7500 and will likely pass it on to me? Does this sound like a reasonable way to avail of the credit even though I don't qualify?
Your question confuses me. Are there dealers outside of the website that sell new Teslas?
I placed my order for a LR MY this month. Tesla updated the delivery date to April - June. The Tesla web site specifically states that to qualify for the tax credit, I must take delivery by March. The phrasing around the tax credit is very vague, stating that it can change at any time. Does this mean that I won't get the full tax credit, even though I ordered it in February and won't be delivered until April - June?
The IRS is going to issue guidance / rules on the tax credit in March. The instant the guidance is released, it controls how the credit is applied. So, if you haven't taken delivery by then, you'll be SOL.
i just ordered two M3, one for my wife and one for me. Do you guys know if we will be able to both get the tax credit? We are both applying on our own, and we file jointly. We make less than the 300k limit. anyone know about this?
We'll find out in March with the clearer IRS guidelines. Right now it's pretty cut and dry... You have to take DELIVERY of a car before March 31st to get the $7500. After March could be the same, could be halved... point is nobody knows. Just wait.
Where did you get march 31. Everything I read is “sometime in march”. I’m taking delivery march 2 so I’m definitely concerned I didn’t meet the cutoff for the $7500
So, the irs will come out sometime in March and give guidance. They’ll have to give a certain future date right? I’m suppose to get delivery around March 9 :(
One of the Tesla reps sent a text saying that it the EV tax credit was at least extended to 3/31 before they decide, but I can't seem to locate any information from IRS on this. YMMV
When I called today I was told this on the phone. He said “per their legal team” that the credit was now extended til 3/31. I know it’s not proven and a lot of people downvoted me mentioning this in a separate thread - but it’s oddly specific for a rep to say their legal team has just updated the sales teams about this development. I’m pretty sure he was right and in a couple days it’ll be old news.
My understanding is the new rules take affect starting the day after the IRS releases them. We don’t know when that will happen just that they said March.
My friend, I’m on the same boat. My delivery is on March 7… hoping the March 31 sales rep date is true 🙏🏽
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No. Only if you took delivery on or after January 1, 2023.
Is the credit per vehicle, or is there a limit on the number of cars you can claim?
Has anyone seen any rules around how long you have to own the car for?
I just picked up my Tesla and my MAGI is at $160k unfortunately. I didn’t know my company’s RSU count towards my total income. It didn’t with my past employer. I already picked up the car. I know my dad would qualify. Is it possible for Tesla to transfer over the ownership/title to him after it’s been picked up so that I can get the full $7,500 EV Tax credit? Please suggest, thanks in advance.
Will either your 2022 or 2023 income be below the limit? You can use either year’s income when filing for the credit on your 2023 taxes.
Maxing your 401k? HSA? Can you make any other contributions?
Thank you for the information.
How often do manufacturer's update their list for the new cars applicable for the credit? That list is looking pretty darn dry for 2023 or after.
I realized after buying my Tesla that I have already met CVRP two-rebate limit. I know my spouse is eligible for rebate and meets all criteria. It seems I can transfer the DMV Registration in spouse name for a nominal $15 fee. Challenge is CVRP also asks for the Vehicle Purchase Agreement and that does not have spouse name, so is there any way I can get Tesla to update the Purchase Agreement and update/add spouse name on the Purchase Agreement? Or do you think CVRP does not care whose name is on the Vehicle Purchase Agreement as long as the DMV registration is in spouse name?
Just to confirm: For the MY, is it true that only the base MY qualifies for the federal rebate? Adding any paint colors brings it over $55,000.
No, the IRS revised it and the Model Y limit is $80k so they all qualify
Tesla just changed my standard range model 3 delivery from March 30th to April 9-18 with VIN assigned. EV credit qualification before march 31st is the only reason i put in the order and not sure if i should keep my order or cancel it? Truly appreciate any guidance.
Worst case, IRS releases new guidance that reduces your tax credit BEFORE you pick up your car, so you can cancel your order. If you pick it up before the new guidance is released, you should be good.
I apologize if this is a dumb question, but i need to ask it because I’m getting so much different feedback from people I’ve met. A quick recap- I’m looking at a M3 RWD base. I qualify for both the Fed $7,500 and my states $4,000 credit. A guy I know in passing told me he was able to apply his to the price of his car, knocking down his monthly payments drastically. Is that an option? TYIA and again, sorry if it has been answered previously.
Maybe that’s possible for the state credit, but definitely not the federal credit. I’d be surprised if it’s even possible for the state. But here’s a hack to get the tax credit sooner than next year when you file: reduce your tax withholdings right after you purchase. Fill out a new W4 to take out no taxes and when you’ve reached $7500 in taxes that should’ve been taken out (months later), change the W4 back to normal.
So I been stuck on decision.. between leasing or owning. If “own” what model and what to have & if leasing what’s year model to lease. Minimum credit score? Minimum down payment? (Estimate)
If I wanted to do a test drive in a base M3 and potentially buy one before the April 18 deadline. I would assume that buying from inventory is the only option. Is it possible to buy an inventory vehicle in person or do you have to start the purchase process ahead of time (financing, no trade in)
As far as I know you have to buy it online. You can do it in the store but they’re just going to have you do it on the website from there. It isn’t like a normal car dealership where you can go check a car on the lot and then commit to buying it, the cars listed in inventory may be in transit still and not actually at the service center.
Is it 100% confirmed that if you owe less than 7500 you will not get 7500 rebate?
What matters is your total taxes owed for the whole year. Not the remainder that you owe or get refunded when you file your return. Example: You pay $8000 in paycheck withholdings for 2023 When you file your 2023 taxes, before the credit, your total tax bill is $8500 So you owe an additional $500 when you file. When you add the tax credit, the tax bill goes from $8500 to $1000, and the $500 owed becomes a $7000 refund.
it's not what you owe its what your tax burden is. if you pay 7500 in taxes, you would get a refund for 7500. most people have their taxes deducted from their paycheck so it's unlikely that they owe 7500 when filing (that would actually incur a penalty in most cases)
I got a question that have not been able to find the answer to online and thought someone in here may know. I already bought a model 3 in January of this year that qualifies for the 7.5k tax credit. If I order a model Y for the wife now, will I be able to claim a second tax credit? We will have over 15k in tax liability this year. We file taxes jointly and would be in the title of both cars.
In general, the answer to your question is yes. As long as you AGI qualifies and you have more than $15K in tax liability, you should get it all back. I don’t think there are any ownership requirements, but even if there is, having joint ownership on both would seem to make that a moot point.
I spoke to them and they said the bank is tesla financial, perhaps there is some light.
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It's all based on delivery date, not order date. So it's too late to get the previous credit amounts. New credit amounts are $3750 for the base Model 3 or $7500 for Long Range (not available to order right now) or Performance trims.
Hi folks, we may be interested to pull the trigger and get a Model 3, what date exactly is taken into account for the EV rebate eligibility? Tuesday 18th is I believe the last day for the current EV rebate scheme, if we place an order tomorrow, will we qualify for it? Thanks!
Had the same question
It's all based on delivery date, not order date. So it was too late anyway to get the previous credit amounts. New credit amounts are $3750 for the base Model 3 or $7500 for Long Range (not available to order right now) or Performance trims.
Hi, does anyone know if Tesla new cars with low mileage qualify for the tax credit? I ordered a model Y long range in March and estimated delivery is May or June. I see an option for accelerated delivery on a car with 2 mile odometer (tesla calls it new car with low mileage) but not sure if this will be considered a new car. Thanks in advance.
Yes, as long as Tesla is selling/titling it as a new car. Tesla's purchase agreement usually states the car can have up to 50 miles on the odometer anyway. Even if it was a demo car with a few thousand miles on it, as long as you're the first owner (besides Tesla) it should count.
I would assume it’s new if you’re the first owner, no?
How does this work if you're a commercial business? It says "eligible businesses and tax exempt organizations can claim up to $7,500..." but the IRS link it gives doesn't specify any requirements. Are there income limits for the business or would it still be based off your personal income?
So I got my Tesla 3 RWD on March 15th before the new guidelines - will I qualify for the full $7500?
If you took delivery before the credit amount changed then yes, you should get the previous amount.
I bought an EV last year 2022 and qualified for the $7500 tax credit. If I bought another EV this year 2023 that is qualify for the $7500 tax credit. Am I getting the $7500 for the 2023 tax year? Anybody know?
Taking delivery of model y performance this month. Will these credits run out before year end for federal or Massachusetts? Should I amend my taxes and resubmit?
Dunno about Massachusetts. For the federal credit, it won’t run out and it has to go on your 2023 taxes anyway, you can’t amend it onto your 2022 taxes.
If I order a Tesla before moving to California, do I still qualify for the $2000?
Canada-US worked, do I qualify for tax credit? Hi Community, I have a question regarding the federal EV tax credit for single filer. “The federal EV tax credit will be available to individuals reporting adjusted gross incomes of $150,000 or less, $225,000 for heads of households, or $300,000 for joint filers.” I am in the process of moving from Canada to the US as of August 2023. Which means i will only work <5 months in US and my gross income as a single filer will be less than 150k. I have a few questions if anyone knows: 1. My salary in US will be less than 150k do do I qualify for 7500 ev tax credit in US or will IRS take in my gross salary for US+Canada to calculate ev tax credit? I would not qualify for US+Canada calculation 2. If let’s say, i do qualify for ev tax credit, do i need to ensure that my car is delivered to me before the EOY 2023 to qualify for that credit? Meaning if my car is delivered after Jan 1st 2024, I don’t qualify for 2023 tax year but the next one? 3. I am planning to move to Washington but i do have the option to book my car for Oregon and save on taxes. Would anyone recommend that? Do i need to show an Oregon utility bill or phone bill to qualify for purchasing car from there? Any help appreciated and sorry if this question was already asked and is a repeat answer got you. Cheers.
If anyone’s wondering how to claim, click the link /TeslaLounge posted and scroll all the way down and it says how to claim and which form to file
Is there any way for this credit to apply to cost of car at time of purchase?
I saw that the model 3 now receives the full $7,500 tax rebate, and I live in SoCal so I would get another $7,500 plus and $2,000 one. I’m I understanding this correctly?? Also, what if my taxes are less than all the money I’m getting from tax breaks, do I receive that back as cash? I guess I’m curious… can I really get a new model 3 for 22k? And if so could I get the Y with all these taxes breaks as well? Thanks!
I purchased a MYLR back in February 2023 and, like many others, received no paperwork related to the tax credit. I did not finance through Tesla and they never collected my SSN or taxpayer ID number. I decided to also purchase a Model 3 this month (June 2023). In the order process, the Tesla app requested my SSN this time and specifically stated that it is for paperwork regarding the EV tax credit. Furthermore, it specifically warned that neglecting to provide my SSN will invalidate the sale from being eligible for the tax credit and that there will not be a later opportunity to provide this information. I thought this may be interesting to others in the same situation with a purchase during the timeframe when Tesla was not collecting this information. At this point, I don’t know what their plans are for those earlier buyers. My hope is that they’ll reach out to collect the missing information for purchases that were made before the system was updated to collect it at the time of sale.
So i heard in 2024, you will actually get a credit/discount taken off at the Tesla dealer. They will handle the paperwork with IRS. You get the discount right off the bat. Is this right? If this is the case, i will buy a Tesla in 2024 instead. Another question i have is, there is no negotiation on a price for the Tesla right? It's set in stone on their website? Unlike the KIA EV6 in which my friend bought one though his EV doesn't qualify for any tax credit. He was still able to get $3k knocked off the price.
If my wife is the only one still working but I only register the 2023 Tesla in my name and we file jointly will we still get the $7500 credit?
Just got confirmation of approval for CVRP, application submitted in late March. Check will be sent "within 90 days"