Tax credit 2023 [The tax credit discussion thread]

[thefisch]

Tesla doesn’t need or want your SSN for the tax credit. YOU claim the credit when you file your taxes. Tesla has nothing at all to do with it.

Not sure about previous tax credits, but the current one requires that the seller report certain information about you. That must be why Tesla started collecting the information recently.

From https://www.irs.gov/credits-deductions/credits-for-new-clean-vehicles-purchased-in-2023-or-after:

 

[thefisch]

Mid-January order, they didn't ask for my SSN.

Yes it asked me before I picked up the car in May. Stated it was needed for the tax credit.

Jan2023/M3RWD, never asked for SSN

May 2023
think they do it for financing and i think if you buy anything over 10K they report to the IRS

So far it seems like they starting asking for SSN as early as May whether someone was just ordering or accepting delivery of a car ordered earlier.

 

[kpanda17]

Think that is because as of April 18, then only specific models were eligible.

 

[nhuqt]

Is there an end in sight for the $7,500 to be available for the Y? Or is it safe to assume that it will be there until the end of the year?

There will be an update come July as new fiscal rules come into effect.

 

[nhuqt]

I checked with my accountant before ordering the Model Y. We're going to file for it at the end of the year, but he's not confident I'll get the credit. I make too much individually (over $150k) to qualify for the tax credit, but I'm getting married later this year and will file taxes jointly for the first time. Since our combined income will be low enough for couples filing jointly (less than $300k), I may or may not get the credit. Accountant was unable to find any instances of someone being in the same situation so he recommended I wait until we're married to buy the car. Good advice, but uhhh... I couldn't wait lol

As long as you are married before the end of the year, you’re able to file married filing jointly so you should have no issues as long as you qualify for the tax credit.

 

[thefisch]

Think that is because as of April 18, then only specific models were eligible.

Yes, there were changes to eligible vehicles when the new critical mineral and battery component requirements went into effect in mid-April. However, the sale reporting requirement was part of the guidance prior to that so that wasn't new in April. The timing could be coincidental if that's when Tesla updated its ordering system to collect SSN.

 

[flixden]

Tesla doesn’t need or want your SSN for the tax credit. YOU claim the credit when you file your taxes. Tesla has nothing at all to do with it.

We'll, according to the IRS, the seller HAS to report the eligible vehicle purchase for you to qualify for the tax rebate. That's where the SS # would be needed.

 

[Redhill_qik]

May 2023
think they do it for financing and i think if you buy anything over 10K they report to the IRS

If you were applying for Tesla financing then you would have been asked for your SSN during that process. With the recent changes for the EV tax credit that requires the seller to report the sale to the IRS to claim the credit, Tesla now asks for that information so that they can send in the data so you can claim that credit. This was not required in the past and was done to reduce fraudulent tax credit claims.

There is no reporting to the IRS because you bought anything above $10,000. You are likely confusing banking regulations that require notifications to the Treasury Department on cash transactions above $10,000.

 

[ucmndd]

We'll, according to the IRS, the seller HAS to report the eligible vehicle purchase for you to qualify for the tax rebate. That's where the SS # would be needed.

I stand corrected.

 

[thefisch]

I ordered in early February 2023 and took delivery in late March and don't recall Tesla asking for my SSN during the order process or at delivery. I assumed Tesla would be collecting this information at a later date.

While at the local SC the other week, I asked an SA about this, and they shared that Tesla now asks for the SSN as part of the ordering process. Not sure when they started collecting the SSN at the ordering stage but the SA didn't know what they were doing for those who ordered prior to that.

For those who ordered in 2023 before Tesla asked for your SSN, were you asked to provide the SSN at a later date?

Thanks all for the feedback so far. Anyone else who ordered before Tesla asked for your SSN during the order process get contacted later by Tesla for that info?

 

[Alonzo]

I ordered a Model Y yesterday and in completing the pre-delivery tasks was asked for my TaxID/SS number. It said that this was the only time they would ask and that IRS required that they send in a notice for me to be eligible to claim the credit. It implied that if I didn't give it to them now, there would not be another chance.

I would think that if they didn't ask for yours when you ordered, there would be some way for you to get it to them later. The notice is definitely an IRS requirement to claim the credit.

Credits for New Clean Vehicles Purchased in 2023 or After | Internal Revenue Service

"Sellers are required to report your name and taxpayer identification number to the IRS for you to be eligible to claim the credit."

 

[thefisch]

I ordered a Model Y yesterday and in completing the pre-delivery tasks was asked for my TaxID/SS number. It said that this was the only time they would ask and that IRS required that they send in a notice for me to be eligible to claim the credit. It implied that if I didn't give it to them now, there would not be another chance.

I would think that if they didn't ask for yours when you ordered, there would be some way for you to get it to them later. The notice is definitely an IRS requirement to claim the credit.

Credits for New Clean Vehicles Purchased in 2023 or After | Internal Revenue Service

"Sellers are required to report your name and taxpayer identification number to the IRS for you to be eligible to claim the credit."

Yes, it will be interesting to see what Tesla does about those who ordered and completed the delivery steps prior them adding the SSN collection. Seems those who completed ordering and delivery steps prior to May are impacted.

 

[buckley]

With two registrants, one of us opted in, and the other opted out, so hopefully the seller report will be for the right person. There was no warning, but maybe that’s changed recently.

Did this end up working out? We’re in a similar situation and I’m wondering if I should opt out or if we should both opt in.

 

[fholbert]

Yes, it will be interesting to see what Tesla does about those who ordered and completed the delivery steps prior them adding the SSN collection. Seems those who completed ordering and delivery steps prior to May are impacted.

April order MY, May 5th delivery. I was asked for my SSN and it clearly stated this was for the IRS.

 

[fholbert]

What about a tax write off for installing a EV (Tesla) Charger at your home?

 

[flixden]

What about a tax write off for installing a EV (Tesla) Charger at your home?

That's a tricky one for some people. I couldn't use it in 2021 when I had a L2 charger installed, because IRS form 8911 factors in some AMT calculation combined with other tax credits (the $7,500 EV credit for example) to then tell me that I am not eligible.
So if you make too much (in the eyes of the IRS), you may not be able to claim the charger and/or charger installation.

 

[markb1]

Did this end up working out? We’re in a similar situation and I’m wondering if I should opt out or if we should both opt in.

I don’t know, yet. But that reminds me, I should email them and see if they can verify.

 

[AJ..]

Does 7500$ tax credit still apply if trading in? (When trading in, we reduce the 50+k new car amount by trade in value - and so my question). Thanks!

 

[SteveV62]

Yes, you still get the $7.5K federal tax credit if you trade in (as long as you otherwise qualify).

 

[staclem]

Hey just a simple question. And maybe there should be a site that says it. Do you have to send a form or email documents before we the end of the tax year when your filing your taxes to get the 7500k incentive? I just couldn't get a good answer on this. Do you file it before or after or both? Thanks