Discussion : All discussion regarding Model 3 and Tax credit in model 3 subforum

[MontyFloyd]

So the Tax POS credit is designed for dealerships to pass credit to customer.
Will this "Dealership method" work with other incentive programs? Texas has one, but it too requires a dealership.

 

[mongo]

So the Tax POS credit is designed for dealerships to pass credit to customer.
Will this "Dealership method" work with other incentive programs? Texas has one, but it too requires a dealership.

PoS works for Tesla because it's Federal level. States that block Tesla sales wouldn't give Tesla state incentives.

 

[Akr]

If I take the credit up front based on my 2023 income, but my 2024 income ends up being over the MAGI limit, will I have to repay the $7,500 when I file my 2024 taxes?

Check with a tax guy on this. Delivery is in 2024. Is the income threshold test based on previous years income or year when vehicle was received. Not clear to me.

 

[mongo]

Check with a tax guy on this. Delivery is in 2024. Is the income threshold test based on previous years income or year when vehicle was received. Not clear to me.

Either year works.
https://www.irs.gov/pub/taxpros/fs-2023-22.pdf

Q1. Could my income level prevent me from taking the new clean vehicle credit? (updated October 6, 2023)
A1. Yes. You may not claim the credit if your modified adjusted gross income (AGI) exceeds certain thresholds. This limitation is based on the lesser of your modified AGI for the year that the new clean vehicle was placed in service or for the preceding year. The relevant modified AGI thresholds are as follows:
• Married filing jointly or filing as a qualifying surviving spouse or a qualifying widow(er) - $300,000
• Head of household - $225,000 • All other taxpayers - $150,000 Your modified AGI is the amount from line 11 of your Form 1040 plus:
• Any amount on line 45 or line 50 of Form 2555, Foreign Earned Income.
• Any amount excluded from gross income because it was received from sources in Puerto Rico or American Samoa.

If your filing status changes between the preceding year and the current year, you may claim the new clean vehicle credit if your modified AGI is less than or equal to the threshold applicable to your filing status for in the preceding year or current year.

 

[Knightshade]

Check with a tax guy on this. Delivery is in 2024. Is the income threshold test based on previous years income or year when vehicle was received. Not clear to me.

You can use either delivery year or previous years income for the income limit qualification

 

[Akr]

Source?

 

[Knightshade]

Source?

Post above mine literally links to the IRS as a source.

 

[E90alex]

Source?

Literally the IRS in the document linked above…

 

[mongo]

Source?

Legislation

26 U.S. Code § 30D - Clean vehicle credit

 

[tyler_k1]

Rolling the dice on a discounted M3P with hopes that the POS credit gets sorted out in time. SA said it's on the IRS to fix their systems and that they would try to be flexible with delivery.

Looks like my gamble paid off this time, I quite like the Highland updates but hard to pass up a $40,680 M3P. Delivery for next week.

 

[arkhos]

Looks like my gamble paid off this time, I quite like the Highland updates but hard to pass up a $40,680 M3P. Delivery for next week.

I was very, very, very tempted to do the same, but the Highland updates are worth the extra cost to me. Now to hope that the new M3P will be out before the end of the year, and it doesn't have a price jacked-up above $55k!

Grats on a GREAT deal!!!

 

[tyler_k1]

I was very, very, very tempted to do the same, but the Highland updates are worth the extra cost to me. Now to hope that the new M3P will be out before the end of the year, and it doesn't have a price jacked-up above $55k!

Grats on a GREAT deal!!!

Thank you, I am excited. As a long time sports car owner, I decided to go with the M3P over the base highland given my $40k budget, not only for the cool performance bits, but also the premium interior (mostly concerned with the stereo as an audio enthusiast).

Once the MY Juniper is released, we will likely trade in my wife's '23 MYLR.

Being as I didn't get such a great deal on the MY (purchased end of 2022), I feel a little bit of redemption with this one.

 

[coffeci]

As of right now, i had my 2022 tax return, filed at 2023, based on that income i am eligible for the tax credit

We didnt file our 2023 tax credit and most probably i wont be elligible, but didnt start my tax

2024 income i will not be eligible but who knows, maybe i will be lay off

So, if i buy car now, should i request tax credit on purchase

 

[Tam]

So, if i buy car now, should i request tax credit on purchase

Yes. POS credit is best. I am not sure whether Tesla would check proof of income to make sure you are qualified.

 

[E90alex]

As of right now, i had my 2022 tax return, filed at 2023, based on that income i am eligible for the tax credit

We didnt file our 2023 tax credit and most probably i wont be elligible, but didnt start my tax

2024 income i will not be eligible but who knows, maybe i will be lay off

So, if i buy car now, should i request tax credit on purchase

If you are buying a car this year then just claim the credit at purchase.

If you end up not being eligible then you will owe it back when you file 2024 taxes. Think of it like a free $7500 loan for a year.

 

[mongo]

As of right now, i had my 2022 tax return, filed at 2023, based on that income i am eligible for the tax credit

We didnt file our 2023 tax credit and most probably i wont be elligible, but didnt start my tax

2024 income i will not be eligible but who knows, maybe i will be lay off

So, if i buy car now, should i request tax credit on purchase

Part of applying for the credit is attesting to meeting the modified AGI limit in 2023 or expecting to in 2024.

Are you close enough for 2023 to contribute <$7,500 to an IRA or HSA to qualify?

 

[coffeci]

Part of applying for the credit is attesting to meeting the modified AGI limit in 2023 or expecting to in 2024.

Are you close enough for 2023 to contribute <$7,500 to an IRA or HSA to qualify?

No

 

[YellyYeti]

Does anyone know if and when Tesla might start offering the Used Clean Vehicle Credit ($4000) on their used vehicles as Point-Of-Sale? There are 2 Model 3's right now that are under $25K on the Tesla website.

 

[mongo]

Does anyone know if and when Tesla might start offering the Used Clean Vehicle Credit ($4000) on their used vehicles as Point-Of-Sale? There are 2 Model 3's right now that are under $25K on the Tesla website.

Never, that's not part of the legislation.
Yes, it is...

 

[dakhlkt22]

Never, that's not part of the legislation.

I wonder why that is. You would think lower income buyers targeted by the Used Clean Vehicle Credit ($4000) would be even more in need of POS than more affluent buyers of new EVs.