Federal Tax Rebate-How does that work?

[AKinDC]

So I bought a few months ago, when the rebate was still at $3750. By the time the tax forms come out, it'll be half of that.
How does the form work?
Will there be instructions on all the different rebate levels?
And I assume I don't have to send anything in until I do my federal taxes in early spring?

 

[PURE NRG]

So I bought a few months ago, when the rebate was still at $3750. By the time the tax forms come out, it'll be half of that.
How does the form work?
Will there be instructions on all the different rebate levels?
And I assume I don't have to send anything in until I do my federal taxes in early spring?

The form you submit for your year end taxes will have a field for the purchase date, and based on that date, the applicable amount will be used for the calculation.

 

[VQTRVA]

So I bought a few months ago, when the rebate was still at $3750. By the time the tax forms come out, it'll be half of that.
How does the form work?
Will there be instructions on all the different rebate levels?
And I assume I don't have to send anything in until I do my federal taxes in early spring?

You'll have to submit proof of ownership in the form of your VIN also.

 

[OCR1]

I’ll be curious to see if TurboTax has all of the data to keep track of the dates and corresponding rebate amounts for 2019. It would have to keep track by manufacturer since Chevrolet is on a different timetable from Tesla.

 

[ewoodrick]

The form won't change, other vehicles still get the full credit. Just search for the form and all of the instructions are there.

 

[mbarrier]

It should use the manufacturer and purchase date to figure out your credit level. I did this awhile back when buying a Honda Hybrid and it was very straight-forward then.

 

[jjrandorin]

So I bought a few months ago, when the rebate was still at $3750. By the time the tax forms come out, it'll be half of that.
How does the form work?
Will there be instructions on all the different rebate levels?
And I assume I don't have to send anything in until I do my federal taxes in early spring?

This might be splitting hairs, but its NOT a "Rebate". A rebate assumes everyone would get it. its a CREDIT against taxes due. If you dont have the tax liability, you will not get the credit. Many people look it as the same thing, but its not. There are plenty of ways that someone could buy a tesla but not have enough tax liability to get the credit. Thats why we need to call it a credit (what it is) instead of a rebate.

 

[BentheRed]

Which specific form do you submit with taxes to prove ownership/delivery? Is it the MVPA? I’m in Texas and we have to pay in full before it will get shipped, so I paid on Nov 20, my MVPA is dated 27th, and I took delivery on Dec 1st. On 14th Dec I got forms from Tesla allowing the to register the car on my behalf, so I’m confused that I’ve been driving the car for 2 weeks and it’s not registered in my name! If you just need the MVPA then I’ll be okay, but if you need a registration document I am at the mercy of Tesla submitting the paperwork on my behalf.
Thanks

 

[6thDAY]

Sorry guys I apologize for this dumb question but I'm still confused on how this federal tax credit works even though I've ready many posts regarding it. What I know is that if you have to pay less than the $1875 in taxes, you wont get the full $1875, but if you have to pay at least that amount, you get the full amount.

What I don't get is this: for example, let's say I filed my taxes and I have to pay $2500 in taxes. Since I am above the $1875 bracket, I'll get the full refund.

However, does that mean I still have to pay back the IRS $2500 - $1875 = $625?

Essentially what I am asking is, given the above example, how much of a refund will I get back without paying anything back to the IRS?

Apologize once again if I'm over-complicating it.

 

[OCR1]

Sorry guys I apologize for this dumb question but I'm still confused on how this federal tax credit works even though I've ready many posts regarding it. What I know is that if you have to pay less than the $1875 in taxes, you wont get the full $1875, but if you have to pay at least that amount, you get the full amount.

What I don't get is this: for example, let's say I filed my taxes and I have to pay $2500 in taxes. Since I am above the $1875 bracket, I'll get the full refund.

However, does that mean I still have to pay back the IRS $2500 - $1875 = $625?

Essentially what I am asking is, given the above example, how much of a refund will I get back without paying anything back to the IRS?

Apologize once again if I'm over-complicating it.

Yes, if you owe $2,500 in taxes, you will subtract the $1,875 in credit and pay the remaining balance of $625. It’s only if your tax liability is less than $1,875 that you don’t get to take advantage of the full credit.

 

[6thDAY]

Yes, if you owe $2,500 in taxes, you will subtract the $1,875 in credit and pay the remaining balance of $625. It’s only if your tax liability is less than $1,875 that you don’t get to take advantage of the full credit.

So am I still getting a physical refund check for $1875 in the mail, or do I get nothing since it'll be subtracted from the $2500 and just only pay the $625?

 

[ferdster]

So am I still getting a physical refund check for $1875 in the mail, or do I get nothing since it'll be subtracted from the $2500 and just only pay the $625?

No check in the mail from the IRS - you mail them a $625 check.

 

[6thDAY]

@0CR1: thanks for the explanation!
@ferdster: thanks for the confirmation!

 

[6thDAY]

So what's the deal with this whole thing about "potential savings" from Tesla?

If I'm understanding this correctly, if someone owes at least the $1875 in taxes, they "technically" dont get any of the $1875 back from the IRS. They just don't owe the IRS $1875.

So how does this reduce the cost of the vehicle after "potential savings"?

 

[SMAlset]

So what's the deal with this whole thing about "potential savings" from Tesla?

If I'm understanding this correctly, if someone owes at least the $1875 in taxes, they "technically" dont get any of the $1875 back from the IRS. They just don't owe the IRS $1875.

So how does this reduce the cost of the vehicle after "potential savings"?

ah it saves you from paying $1875 that you would have otherwise had to pay the IRS, ie. a "savings". That's how a credit on your tax return works.

The "potential" terminology is because Tesla wouldn't know what your tax liability is when you buy the car (you should have a good idea) and you potentially have a Federal credit of $1875, less if you owe the government less. The credit doesn't carry over to 2020 either. One time tax return shot at using.

 

[6thDAY]

Ah ok thanks alot that means total sense, so essentially the out-of-pocket $1875 that you would have "had to pay" for the taxes can now "technically" go towards your car payments?

Good business tactics on Tesla!

 

[SMAlset]

This Edmunds article might be helpful to some in explaining how the Federal and State tax credits work. it was published beginning of 2019 and covers reduced credits for GM and Telsa throughout each quarter.

Electric Vehicle Tax Credits: What You Need to Know | Edmunds

Here's where you can get the applicable IRS Form 8936 and instructions: About Form 8936, Qualified Plug-In Electric Drive Motor Vehicle Credit | Internal Revenue Service

 

[BentheRed]

This Edmunds article might be helpful to some in explaining how the Federal and State tax credits work. it was published beginning of 2019 and covers reduced credits for GM and Telsa throughout each quarter.

Electric Vehicle Tax Credits: What You Need to Know | Edmunds

Here's where you can get the applicable IRS Form 8936 and instructions: About Form 8936, Qualified Plug-In Electric Drive Motor Vehicle Credit | Internal Revenue Service

Thanks for the links, but can someone who claimed in the past, say $7500 last year, let me know what documentation from Tesla they supplied with their taxes? Was it the MVPA?

 

[EinSV]

Thanks for the links, but can someone who claimed in the past, say $7500 last year, let me know what documentation from Tesla they supplied with their taxes? Was it the MVPA?

No supporting documentation is required to be submitted -- just fill out and submit Form 8936 with your tax returns and claim the EV credit along with any other tax credits you qualify for.

The form (linked by @SMAlset) asks for the VIN and the date placed in service for each qualifying car

 

[SMAlset]

If you get audited you will need the purchase documentation to verify your eligibility. The MVPA will have your VIN and probably best place to copy it from.