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I asked the guy flat out. If you don't owe ANY tax after all is said and done on your 1040 you get ZERO. You must OWE tax. For 2024 it has nothing to do with tax. It's an instant price discount
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Discussion : All discussion regarding Model 3 and Tax credit in model 3 subforum
- Thread starter mapman
- Start date
E90alex
Active Member
Income limits still apply but tax obligation no longer matters.
E90alex
Active Member
Because a random poorly trained Tesla employee knows more than the actual IRS rules?
It offsets up to $7,500 of tax liability. The amount of tax still due is irrelevant (beyond impacting your final refund/ payment)
Line 24 (without the credit) not line 38.
https://www.irs.gov/pub/irs-pdf/f1040.pdf
ucmndd
Well-Known Member
By the correct definition of “OWE” this is valid.
But you appear to be, once again, conflating “owe” with what is required to settle up at the end of the year after all of your contributions and withholdings. They are not the same thing, just like they weren’t the same thing the last time you went on about this. You still don’t seem to understand the difference.
JCtx
Member
So how exactly does that work? Do you have to show a dealer your tax return? That doesn't sound right to me, but maybe that's the way it is?
I think when you file your taxes you have to fill out that you received the point of sale credit, and if your income is above the limit, for both the year that you took the credit and the prior year, you have to pay it back.
The line I'm talking about is where they ask you what is greater - what we owe you or what you owe. On the other hand I haven't seen the 2023 tax form yet.
Have you?
ucmndd
Well-Known Member
And once again, this line is wrong and has no bearing at all on whether or not you receive the credit.
Sure. It’s right here:
Simplifying slightly, the line you want to pay attention to is #24 (total tax). If this line is greater than $7,500, you will receive the entire value of the credit, which you claim in the “payments” section that starts on line 25.
ucmndd
Well-Known Member
I am not a CPA or tax preparer, I just play one on Internet forums.
That said, the EV tax credit form (8936) rolls up to Schedule 3, so I believe it ends up back on your 1040 on line 31.
JCtx
Member
A first grader should understand if you PAID $7,500 in federal taxes, and qualify otherwise, you'd get it all back. And that's whether you still owe it, or you paid it in quarterly estimated tax payments.
Hi Guys maybe this might be a repeated question but please clarify. I leased a M3LR back in June 23 thinking that I’ll get my $7500 down payment as tax credit during 2024 tax filing. But recently came across an article saying that $7500 credit goes to Tesla if leased. Can I still claim the credit while filing taxes ? In the documents it doesn’t say anything like -$7500 deducted or so. Please clarify
The owner gets the tax credit. You are not the owner, so you dont get it. The plain language answer is "no, you can not claim the tax credit on a leased vehicle."
For people with sufficient tax liability, it's just shifting the refund around. (Reducing personal tax payment)
For prople with less liability, it's reducing the overall federal tax payments (beyond the buyer).
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