Tax credit 2023 [The tax credit discussion thread]

[MacO512]

I don't believe you need to submit your SSN to claim the credit. If you purchase the vehicle and meet all the requirements such as income limits you can claim the credit.

It may be that the IRS more closely reviews returns if you claim the credit and they don't have an automatic match in their database from dealer (Tesla) VIN/SSN data. Then you just send the IRS your purchase agreement as substantiation of your tax return and that will conclude their review.

Theres going to be thousands of cars purchased from thousands of dealerships all claiming credits. Some dealers will do paperwork and record data correctly. Others won't. The IRS most certainly is not going to perfectly have an exact record of every entitled buyers SSN. Especially this first year of implementation - everyone including the IRS is scrambling to figure out the rules and how to record this.

My guess is the IRS may only review if two people try to claim the credit using the same VIN. Or if a VIN doesn't match the required option for the credit claimed (over 80k/ foreign construction/etc). If they start to see trends with fraud they'll probably review those scenarios more closely. If not they have stacks of work they are way behind on and probably won't bother to look into seemingly legit credits.

I'm a CPA but don't currently work in tax. This is all just my opinions.

 

[RaveDave69420]

Hi Everyone,


I ordered a Tesla Model Y in April of 2021, and at the time, I didn't qualify for the Federal Tax Credit since Tesla already sold their first 200,000 vehicles, which were the only ones applicable for the Federal Tax Credit.

Now that this new 2023 Tax Credit happened, and that Model Y's are now considered SUVs, I have been seeing a lot of updates about Model Y's now being available for the tax credit. It seems like everyone is talking about new sales after this update, but no one is talking about the people who previously bought Model Y's and couldn't get a tax credit (and also paid for a Model Y when the price was much higher!)

I can't find any information on 2021 Sales qualifying for the credit. Do you know if I could apply for it now? Or have it apply to my 2021 tax year so I can amend my 2021 tax return? Anyone have any relevant information about it? Would love some help with this one!!

I also tried contacting Tesla directly, but it just their "contact us" section just leads to a bunch of preset questions and answers. I couldn't find a way to actually contact them directly :/

 

[jjrandorin]

Do you know if I could apply for it now?

No, you cant (like absolutely, positively 1000000000% no)

It wasnt available in 2021 so you cant amend your 2021 return with a credit that was only available starting in Jan 2023.

You didnt buy in 2023, so your not eligible this year either. There isnt any ambiguity at all on this. You need to have bought the car this year to this tax credit, which became available in Jan of 2023, this year.

 

[Jerryr]

Hi Everyone,


I ordered a Tesla Model Y in April of 2021, and at the time, I didn't qualify for the Federal Tax Credit since Tesla already sold their first 200,000 vehicles, which were the only ones applicable for the Federal Tax Credit.

Now that this new 2023 Tax Credit happened, and that Model Y's are now considered SUVs, I have been seeing a lot of updates about Model Y's now being available for the tax credit. It seems like everyone is talking about new sales after this update, but no one is talking about the people who previously bought Model Y's and couldn't get a tax credit (and also paid for a Model Y when the price was much higher!)

I can't find any information on 2021 Sales qualifying for the credit. Do you know if I could apply for it now? Or have it apply to my 2021 tax year so I can amend my 2021 tax return? Anyone have any relevant information about it? Would love some help with this one!!

I also tried contacting Tesla directly, but it just their "contact us" section just leads to a bunch of preset questions and answers. I couldn't find a way to actually contact them directly :/

The current Inflation Reduction Act, Federal EV Tax credit only applies to purchases made in 2023 or later. You are out of luck.

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.

www.irs.gov

 

[MacO512]

Hi Everyone,


I ordered a Tesla Model Y in April of 2021, and at the time, I didn't qualify for the Federal Tax Credit since Tesla already sold their first 200,000 vehicles, which were the only ones applicable for the Federal Tax Credit.

Now that this new 2023 Tax Credit happened, and that Model Y's are now considered SUVs, I have been seeing a lot of updates about Model Y's now being available for the tax credit. It seems like everyone is talking about new sales after this update, but no one is talking about the people who previously bought Model Y's and couldn't get a tax credit (and also paid for a Model Y when the price was much higher!)

I can't find any information on 2021 Sales qualifying for the credit. Do you know if I could apply for it now? Or have it apply to my 2021 tax year so I can amend my 2021 tax return? Anyone have any relevant information about it? Would love some help with this one!!

I also tried contacting Tesla directly, but it just their "contact us" section just leads to a bunch of preset questions and answers. I couldn't find a way to actually contact them directly :/

Tesla purchase has to be in 2023. I bought a model Y in 2022, it's not eligible for any tax credits.

 

[NJturtlePower]

This incentive is so often confused! Its not about "owing" its about liability, as in taxes paid on income throughout the year by payroll deductions for most.

Best video I found that explains it correctly.

Nothing has changed in the terms of the Federal $7500 since I claimed it back in 2018 besides the new income caps and designated vehicles that are eligible or not.

 

[pcurtis1980]

Looking to gift Father in Law with a Model Y. In order for him to get the tax credit, can I pay for order reservation on credit card as long as he that is wiring the funds and is the one on title and actual first owner?

Just want to make sure that he would still qualify... the goal is to go pick it up and surprise him (we are near Fremont/sunnyvale)...

Last question is how do I know that the Model Y I order will be HW4 or are they all HW4 now?

Thanks,
Patrick

 

[Mike728]

Looking to gift Father in Law with a Model Y. In order for him to get the tax credit, can I pay for order reservation on credit card as long as he that is wiring the funds and is the one on title and actual first owner?

Just want to make sure that he would still qualify... the goal is to go pick it up and surprise him (we are near Fremont/sunnyvale)...

Last question is how do I know that the Model Y I order will be HW4 or are they all HW4 now?

Thanks,
Patrick

This is confusing. You're buying your FiL a MY, but he's going to be wiring the funds without him knowing?

 

[pcurtis1980]

sorr

This is confusing. You're buying your FiL a MY, but he's going to be wiring the funds without him knowing?

sorry, I mean can I pay for the order/reservation on my credit card but then by the time we pick up the car and the funds are due, we've already wired him the funds to his account so he can pay. that way it can stay a surprise...I guess that's my question

 

[zelikor18]

Hey everyone, I’m looking to purchase MYP soon. I am a Colorado resident so I am looking to apply the $5,000 EV tax credit towards the loan, which I'm pretty sure I am able to do so according to this document CO Tax Credit page 4

"A purchaser or lessee who obtains financing for the purchase or lease of a qualifying motor vehicle may, by mutual agreement with the financing entity, assign the credit to the financing entity. The assignment must be completed at the time of purchase or lease by executing the required election statement. The financing entity must compensate the motor vehicle purchaser or lessee for the assigned credit."

It goes on to say to fill out form DR 0618 to be completed at time of purchase and that starting 2024, dealers can take the credit at purchase.

Has any CO residents completed this process with your bank/Tesla? just wondering how it went...would the $5,000 get applied to MSRP and taxes calculated afterwards?

 

[tradosaurus]

Hey everyone, I’m looking to purchase MYP soon. I am a Colorado resident so I am looking to apply the $5,000 EV tax credit towards the loan, which I'm pretty sure I am able to do so according to this document CO Tax Credit page 4

"A purchaser or lessee who obtains financing for the purchase or lease of a qualifying motor vehicle may, by mutual agreement with the financing entity, assign the credit to the financing entity. The assignment must be completed at the time of purchase or lease by executing the required election statement. The financing entity must compensate the motor vehicle purchaser or lessee for the assigned credit."

It goes on to say to fill out form DR 0618 to be completed at time of purchase and that starting 2024, dealers can take the credit at purchase.

Has any CO residents completed this process with your bank/Tesla? just wondering how it went...would the $5,000 get applied to MSRP and taxes calculated afterwards?

Would love to hear the total tax credits and grants you get from Colorado. They have an insane amount of credits for the purchase of an EV.

 

[acpd]

Per irs article below:
"You can use your modified AGI from the year you take delivery of the vehicle or the year before, whichever is less. If your modified AGI is below the threshold in 1 of the two years, you can claim the credit."

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.

www.irs.gov

2022 AGI (filed April 2023): Less than $300k

2023 projected AGI (to be filed April 2024): more than $300k

2024 projected AGI (to be filed April 2025): more than $300k


I know I qualify if I take delivery now. Question is do i qualify for EV Tax credit if I take delivery in 2024?

 

[E90alex]

You might qualify for 2024 if your 2024 income will be under the limit.

 

[N2B8]

Per irs article below:
"You can use your modified AGI from the year you take delivery of the vehicle or the year before, whichever is less. If your modified AGI is below the threshold in 1 of the two years, you can claim the credit."

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.

www.irs.gov

2022 AGI (filed April 2023): Less than $300k

2023 projected AGI (to be filed April 2024): more than $300k

2024 projected AGI (to be filed April 2025): more than $300k


I know I qualify if I take delivery now. Question is do i qualify for EV Tax credit if I take delivery in 2024?

If you look at the instructions for Line 18, the IRS asked for mAGI for 2021 and 2022. It's as if they are considering the 2022 mAGI as the "current" year for cars bought in 2023. So I'm thinking if you buy a car in 2024, you can use mAGI from 2022 or 2023. And note that these instruction were revised in January 2023.

Instructions for Form 8936 (2023) | Internal Revenue Service

www.irs.gov

 

[acpd]

If you look at the instructions for Line 18, the IRS asked for mAGI for 2021 and 2022. It's as if they are considering the 2022 mAGI as the "current" year for cars bought in 2023. So I'm thinking if you buy a car in 2024, you can use mAGI from 2022 or 2023. And note that these instruction were revised in January 2023.

Instructions for Form 8936 (2023) | Internal Revenue Service

www.irs.gov

Ah.. seems like a stretch.

 

[E90alex]

If you look at the instructions for Line 18, the IRS asked for mAGI for 2021 and 2022. It's as if they are considering the 2022 mAGI as the "current" year for cars bought in 2023. So I'm thinking if you buy a car in 2024, you can use mAGI from 2022 or 2023. And note that these instruction were revised in January 2023.

Instructions for Form 8936 (2023) | Internal Revenue Service

www.irs.gov

Last revised 01/2023 meaning it was for 2022 tax year. They will update the form again in Jan 2024 before the 2023 tax filing period for cars purchased in 2023.

 

[N2B8]

Last revised 01/2023 meaning it was for 2022 tax year. They will update the form again in Jan 2024 before the 2023 tax filing period for cars purchased in 2023.

If you’re buying in 2023, aren’t you going to use that form w the 01/2023 Rev? Which asks for 2021 and 2022 tax year numbers to see how much and whether you qualify. Don’t take my words for it, read the instructions in the form via the link above.

 

[E90alex]

If you’re buying in 2023, aren’t you going to use that form w the 01/2023 Rev?

No. It’s filed with your tax return. 2023 tax return forms are not available yet.

 

[N2B8]

No. It’s filed with your tax return. 2023 tax return forms are not available yet.

Thanks. I thought if you qualify using 2022 mAGI then you get the credit back from 2022 tax payments.

 

[yyds88321]

Has anyone noticed the $7500 now available for lease option? And it is straight off from the lease payment. I think this new incentive was started on 10/14.