So, I did figure this out, I think. When you add the registration details, it asks for your SSN for tax credit purposes. I'm not sure it asked when I first made my order (maybe I forgot), but it asked when I updated the registrant information. It actually asked both registrants, with nothing saying they can only submit the seller report for one registrant. I think the right think to do if for the registrant that will claim the credit to give their SSN, and the other registrant should opt-out.
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Tax credit 2023 [The tax credit discussion thread]
- Thread starter CrazyRabbit
- Start date
So, I did figure this out, I think. When you add the registration details, it asks for your SSN for tax credit purposes. I'm not sure it asked when I first made my order (maybe I forgot), but it asked when I updated the registrant information. It actually asked both registrants, with nothing saying they can only submit the seller report for one registrant. I think the right think to do if for the registrant that will claim the credit to give their SSN, and the other registrant should opt-out.
itsallaboutme
Member
If you don't get the full $7500k for your next tax return does the credit roll over until you use it? Seeing different answers I also heard that in 2024 the $7500 will be point of sale rebate. But knowing Tesla that means the cars will cost $7500 more by then. Or not even qualify.
There is no roll over in that case, you're limited to your 2023 tax liability. Indeed I would assume that in 2024 you'll get the $7500 no matter what, but agreed that it's impossible to tell if it still qualifies and what the price will be.
Note that there are ways to increase your tax liability, e.g. by converting (part of) a regular 401K or IRA account to a Roth 401k or IRA. But it all depends on your personal situation if that is a good thing to do or not.
It might be a silly question, but I am curious. If I purchase a new Model Y, is it possible to file $7500 credit not next year, but in “2025” to get a full tax credit? I am asking this because my income will increase a lot next year, but now I am not one that who can get the entire tax credit, if I file this next year.
No. Credit is only applicable to the tax year of your purchase.
You have to owe taxes to get a credit. The government is not giving you a 7500 check for buying a car, it’s giving you tax credits if you owe them. So if you owe 10k in federal taxes, with $7500 credit, you will owe $2500. If you owe them nothing, then the tax credit towards your car is $0
It is imprecise to use the word "owe" here. Your statement sounds definitive, but is actually ambiguous. Define "owe."
Very good point! For the record, you must have Federal Tax Liability in excess of $7,500.00 for 2023 in order to fully benefit for the $7,500.00 EV Tax Credit. And not to exceed the Federal AGI limit (ceiling/cap) of $300K for married filing jointly (or $150,000 single).
beewang
CleanDemon
Member
Most salaried people will easily pass the threshold of $7,500 or more in income tax liability. For example, their paycheck tax federal tax withholdings.
Hi,
I am purchasing MYP with a family member and plan to claim ev credit through only one person. The other person doesnt meet income limit. Is there any potential problem to this? Title is going to have both of our names on it and registration of the car as well.
I also read on IRS website that in order to qualify for the credit, the seller has to report my name and tax id to IRS. Any issue with this since only one owner qualifies for the credit?
I would appreciate your advice
I am purchasing MYP with a family member and plan to claim ev credit through only one person. The other person doesnt meet income limit. Is there any potential problem to this? Title is going to have both of our names on it and registration of the car as well.
I also read on IRS website that in order to qualify for the credit, the seller has to report my name and tax id to IRS. Any issue with this since only one owner qualifies for the credit?
I would appreciate your advice
How do we know if/when Tesla does this? I don't see any document listed under our MY purchased on 3/30/2023 for this explicit purpose. Wondering if Tesla will validate whether this step has actually been completed somehow?
Commercial customers avoid the IRA restrictions (MSRP Cap, buyer income CAP, battery sourcing requirements) that apply to individuals. In most leasing cases an automaker's EV is sold to a leasing company who receives the $7500 credit and leases it to an individual. The leasing company has the option to use that benefit to reduce (or not) leasing fees to their customer.
In Tesla's case there is no leasing company that Tesla sells the car to, so no one receives the credit? Technically tesla never sells the car. Tesla leasee is only a renter who cannot buy the car at the end of the lease, so they cannot receive the credit?
I asked a local Tesla showroom sales rep if tesla was applying any ira related discounts to there leasing contacts and he said no.
Comments?
In Tesla's case there is no leasing company that Tesla sells the car to, so no one receives the credit? Technically tesla never sells the car. Tesla leasee is only a renter who cannot buy the car at the end of the lease, so they cannot receive the credit?
I asked a local Tesla showroom sales rep if tesla was applying any ira related discounts to there leasing contacts and he said no.
Comments?
You will see the document when you log into your Tesla account on the website. The SA said the document will be provided by the end of the year for your Tax Filing in 2024.
A bit of a different question - Is there a financial advantage to the tax credit this year over the point-of-sale price reduction next year?
Purchase now: Seems like the advantage of purchasing now would be that I would have more income by increasing my withholding so I have about a $7500 tax burden for this tax year. This results in more take-home income and less federal taxes paid.
Purchase 2024: $7500 is deducted from the sale price resulting in lower loan balance/payment. No changes necessary to my withholding as above.
Overall, it seems that I benefit from the $7500 savings in both scenarios, but with the tax credit, I receive all the benefit up front, whereas next year, I have the $7500 savings realized through the life of the loan.
I'm sure there are a lot more variables here, but I'm trying to determine if one is obviously better than the other.
Thanks for your responses!
Purchase now: Seems like the advantage of purchasing now would be that I would have more income by increasing my withholding so I have about a $7500 tax burden for this tax year. This results in more take-home income and less federal taxes paid.
Purchase 2024: $7500 is deducted from the sale price resulting in lower loan balance/payment. No changes necessary to my withholding as above.
Overall, it seems that I benefit from the $7500 savings in both scenarios, but with the tax credit, I receive all the benefit up front, whereas next year, I have the $7500 savings realized through the life of the loan.
I'm sure there are a lot more variables here, but I'm trying to determine if one is obviously better than the other.
Thanks for your responses!
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