Thanks for sharing and yes I spoke with my local Tesla store and they have a new 2023 Red Model X for the newly reduce price making it under 80k before taxes etc. For clarification as I don't know much about taxes if I paid 20,000 in withholdings and my tax liability is 19,000 that would mean I will get a refund check of $8500?
Refund Check = 20000 - (19000-7500)
Your refund check will be $1,000. Here's how:
If you can look up your 2022 tax, form 1040, line 24. It says:
24. Add lines 22 and 23. This is your
total tax.
That is your tax liability. This is what the IRS wants you to pay based on income and deductions (you didn't deduct $7,500 on your 2022 filing)
If your financial situation is the same, your 2022 tax, form 1040, line 24 should be a good guide on how much IRS wants you to pay.
For simplicity, if 2023 form 1040, line 24 says $19,000. That means the IRS wants you to pay $19,000. That's your tax liability.
If your 2023 W2 says the Federal Tax Withholding is $20,000, that means you paid too much and you should get $1,000 back.
Notice that you don't get an additional $7,500 back or a total of $8,500 because that $7,500 is included in the deduction on line 20.
Without that line 20, your tax liability would be $26,500. The reason the line 24 tax liability becomes $19,000 is because $26,500 - $7,500= Tax Liability of $19,000.
You can only use that $7,500 once before line 24, tax liability, and none after line 24.
IRS wants $19,000, your W2 withholds $20,000, and your Refund Check will be $1,000.
I'd wait till Jan 2024, but since Tesla doesn't give the tax rebate on leases I'm guessing Tesla won't give the tax break on new purchases next year either.
I don't think you get $7,500 tax credits for leases, but lease companies may persuade you that they reduce that amount in your payment.
EV tax credits are very complicated, depending on many factors, including critical minerals... For 2023, it's now settled, and we know the rules.
2024 is uncertain because Tesla hasn't confirmed that it will comply with all the requirements for us to get the EV credits.