The way I understand it, Tesla has to file with the IRS and you have to provide the proper IRS form for you to get the tax offset. I'm hoping Tesla fulfills its obligation because I'm sure I'll do my part. It's like you employer 's requirement to provide the IRS with your W-2 or your broker providing a form 1099.
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Tax credit 2023 [The tax credit discussion thread]
- Thread starter CrazyRabbit
- Start date
Macb00kemdanno
Member
Why is everyone worried about this right now? You can’t file until next year anyway if you bought in January 2023 or later.
Sounds like this could be a financial mess honestly. Be happy you make > $300k and you do this scheme to what, just to save $7.5k with possible legal hassles if you or your spouse were to ever get in an accident?
$$ dealings within an extended family can already be a mess and folks want to involve co-workers?
In an accident, everyone will be sued so your co-worker too even though he/she probably wouldn't be owner soon. This could also be viewed as tax fraud, but I'm not a tax attorney nor work in the IRS, but specifically structuring a deal to take advantage of a tax when one doesn't qualify seems a bit suspicious.
And you have folks who always chime in about rich folks don't care about tax credits all the time (if anything, they care tons more and will come up with any scheme to work the system...as shown in this example).
People worry about this now because if Tesla don't do their part reporting to IRS, you don't get crap next year.
Well, we have a weekend delivery scheduled for our Model Y LR. At this point, we don't know if the Model Y LR will qualify for the tax credit. I'm slightly worried we won't know before our pickup date. Anyone heard any good rumors out there? Hopefully on 3/1 we'll get some news from Tesla...
I thought the current rule according to the IRS is that the $3750 for battery components is available for all cars if put in service prior to their proposed rules being published.The other 3750 rule (manufacture of the battery/car can't remember) is already live and Tesla should qualify) Once proposed rules are published for battery components (not final rules after comment period, but proposed) vehicles put in service will be subject to those rules, which most believe Tesla would not qualify under the rules as suggested but not proposed. So in short 7500 until the proposed rule. Likely 3750 after the proposed rule. Of course they could always punt a decision down the road as well.
I might be wrong, but that is how I read the IRS notice
Gotcha, so *if* that's correct, at some point during March, the IRS *could* publish a change which takes $3750 away from someone. Very interesting.
Technically the original law said they had to release rules by Dec 31 2022. They released rules for everything else except the battery components part where they said they would very explicitly publish rules regarding this in March (1st, 31st, 17th no one knows). They will publish something, but it could be we need more time. I personally think they will publish rules on the 31st.
I searching all over the internet but not getting the answer for my question.
The question is, If my tax liability is $10,000 (line 22 on W2) for the year and I have paid it in full or little excess in my monthly pay check tax deductions, say in this case I have paid $10,500 by end of December, so I will get a refund of $500. So with the $7500 tax credit will I get $8000 back in this case ( $500 + $7500) ?
The question is, If my tax liability is $10,000 (line 22 on W2) for the year and I have paid it in full or little excess in my monthly pay check tax deductions, say in this case I have paid $10,500 by end of December, so I will get a refund of $500. So with the $7500 tax credit will I get $8000 back in this case ( $500 + $7500) ?
cdub
OG 2011 Leaf / 2023 Model Y LR
To add to cdub, yes! Well done!
refund = <taxes paid> - <liability>
The credit reduces your liability. If it reduces liability by 7,500, refund goes up by 7,500.
(It is a confusingly-named "non-refundable tax credit". It is included in 1040 Line 20. That is subtracted when calculating Line 22.
As the form says Line 22 cannot be less than 0. That's why some people cannot benefit by the whole 7,500.)
refund = <taxes paid> - <liability>
The credit reduces your liability. If it reduces liability by 7,500, refund goes up by 7,500.
(It is a confusingly-named "non-refundable tax credit". It is included in 1040 Line 20. That is subtracted when calculating Line 22.
As the form says Line 22 cannot be less than 0. That's why some people cannot benefit by the whole 7,500.)
cdub
OG 2011 Leaf / 2023 Model Y LR
Yes. If you only owe $7,000 in taxes for example you'd get $7,000 and not $7,500.
But... Is this different when it becomes a POS credit next year? Would you then owe the difference if your tax bill wasn't enough?
But... Is this different when it becomes a POS credit next year? Would you then owe the difference if your tax bill wasn't enough?
ATPMSD
Active Member
Transferring the credit to the Dealer is optional and there is no documentation on how it will work If someone decided to do that.
ATPMSD
Active Member
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