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Discussion : All discussion regarding Model 3 and Tax credit in model 3 subforum
- Thread starter mapman
- Start date
I took advantage of Fed tax credits two times. I know.
Also it is basic common sense. Paying your taxes throughout the year instead of at the time of your tax return should not be detrimental to the tax payer.
Let us say your Fed tax liability is $20K. With this EV credit that liability is now only $12.5K ($20k - $7.5k)
- If you have already paid $4K of taxes then you only have to pay $8.5k more when you file your returns.
- If you have already paid $15K of taxes then you get back $2.5K when you file your returns
Simple as that
Last edited:
whisperingshad
Active Member
I good paint job is usually more , at least in CaliIt's cheaper to paint it
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Thanks, that's they way I took it too. I always get a refund because I've paid in too much so I figured this would just get me a bigger refund.
SilentWarp
Member
Credits for new clean vehicles purchased in 2023 or after | Internal Revenue Service
You may qualify for a clean vehicle tax credit up to $7,500 if you buy a new, qualified plug-in electric vehicle or fuel cell electric vehicle.
The credit is available to individuals and their businesses.
To qualify, you must:
- Buy it for your own use, not for resale
- Use it primarily in the U.S.
- $300,000 for married couples filing jointly
- $225,000 for heads of households
- $150,000 for all other filers
The key word in your return is “liability”. The guy that said your refund would still be 1,000 is mostly wrong. Your tax payable or refund amounts to this: outstanding refund =/< withholdings -(liability - credits) liability -(withholdings + applicable credits). Payment is almost the same, just remove the “<“ symbol
sorta. Mostly. As far as I know.
sorta. Mostly. As far as I know.
Buy it in white and have it wrapped. Then you can go with the new ultimate red.
The model Y performance does qualify for 7500 federal credit? All model 3s and Ys are listed at 7500
Don't quote on me on this
But based on the information on the Tesla site, Model Y qualifies under the SUV limit (MSRP of $80K or below). Assuming income requirements are met, I think MYP qualifies for the $7,500 credit.
CleanDemon
Member
Copied from Tesla site today....
Customers who take delivery of a qualified new Tesla and meet all federal requirements are eligible for a tax credit up to $7,500.
Your eligibility for any tax credits depends on your personal tax situation. We recommend speaking with a tax professional for guidance.
Customers who take delivery of a qualified new Tesla and meet all federal requirements are eligible for a tax credit up to $7,500.
Adjusted Gross Income Limitations
- $300,000 for married couples filing jointly
- $225,000 for heads of households
- $150,000 for all other filers
Price Caps
The vehicle price at time of delivery must not exceed the following caps. This price includes optional equipment physically attached to the vehicle at the time of delivery and excludes software features, accessories, taxes and fees.- Model 3: $55,000
- Model Y: $80,000
Your eligibility for any tax credits depends on your personal tax situation. We recommend speaking with a tax professional for guidance.
Hey guys,
I get a tax refund every year and would like to know how would the EV credit of 7,500 affect my tax refund? My total taxes are at 5k.
Will my tax return go up by 2.5k or will it stay the same (basically as if nothing happened). Sorry, been getting differing answers and would like to know before I make a purchase.
I get a tax refund every year and would like to know how would the EV credit of 7,500 affect my tax refund? My total taxes are at 5k.
Will my tax return go up by 2.5k or will it stay the same (basically as if nothing happened). Sorry, been getting differing answers and would like to know before I make a purchase.
E90alex
Active Member
What do you mean your total taxes are at 5k? Your total tax liability for the whole year is only $5k? Or you get a $5k tax refund every year?
ucmndd
Well-Known Member
Search the endless threads discussing the tax credit. This topic has been beaten like a rented mule.
The fact that you “get a refund” every year is not relevant. The tax credit is a dollar for dollar reduction of your total tax liability, up to $7,500.
Check line 24 of form 1040 from last year’s tax return. If you expect your income to be similar this year and line 24 is greater than $7,500, you will get the total value of the tax credit (presuming you are below the max income limit of $150k single / $300k joint).
If line 24 is less than $7500, that is the amount of the $7500 you’ll get to claim.
The fact that you “get a refund” every year is not relevant. The tax credit is a dollar for dollar reduction of your total tax liability, up to $7,500.
Check line 24 of form 1040 from last year’s tax return. If you expect your income to be similar this year and line 24 is greater than $7,500, you will get the total value of the tax credit (presuming you are below the max income limit of $150k single / $300k joint).
If line 24 is less than $7500, that is the amount of the $7500 you’ll get to claim.
My line 24 is 5k. So when you say I can claim the 5k, does that mean that gets added to my tax refund, or the 5k goes to zero due to the credit and nothing happens to my refund?
Assuming my tax refund is 4k, will my total refund be 9k?
Thank you, I really am just trying to get my math right.
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