Does that mean it's too late to submit it now ? and my 2023 Tesla won't qualify for tax credit ?
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Tax credit 2023 [The tax credit discussion thread]
- Thread starter CrazyRabbit
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ATPMSD
Active Member
The “who” and dates have changed. The “dealer” must provide the buyer the required information by January 31st for cars purchased in 2023. The form you need is in your documents folder, if you bought a qualifying car in 2023.
TLH AP
Member
The forms are available on TurboTax, but it will not allow you to file your return until Feb 15, assuming the IRS with get their act together by then. Remember that this is a credit against tax that you owe. I am retired and most of my income is tax free, therefore my tax and credit for my 2023 MYLR was no where near $7,500 until I tapped into some taxable income sources. I still did not make $7,500, but got a little closer trying not to move into a higher tax bracket. The up front credit will still require you to report the credit on your tax return, and from what I can see, it is not clear what the IRS will do in that case. I suspect it will be the same situation, since the dealer is not going to give you $7,500 unless they can get it back from the Feds, and you will pay back the difference on your return. I am not a CPA, so maybe someone else with those credentials can chime in.Does the model y qualify for the full 7500 federal 2023 tax credit, when configured under 80k purchase price?
Lots of caveats in inflation bill:
Here's every electric vehicle that qualifies for the current and upcoming US federal tax credit
As sales of electric vehicles continue to surge, many new and prospective customers have questions about qualifying for federal tax...electrek.co
Sorry if this has been asked before.
- That means you can get your credit up front at the dealer, but these terms may not kick in until 2024
- In order to get the full credit, the EV must be assembled in North America and…
- The majority of battery components need to come from North America and…
- A certain percentage of “critical minerals” must come form North America or countries with free trade agreements with the US
The "up front credit" is for 2024 deliveries and does not require repayment of any amount larger than your tax liability for 2024. Only the income limits and car listing eligibility apply. If you get the credit but are later determined to be ineligible due to income, you will have to pay it back to the IRS. It won't be a problem for the dealer.
You can Generate 2023 IRA Document for co-registrant owner using https://www.tesla.com/contactus where you need to provide the SSN and Tesla will fill in the matching name and other details on the 15400 form available from the Tesla account. I believe there were issues generating the form for Secondary earlier, but it seems to be working now.
I take it this is for situations where the second name listed has more tax liability and/or the qualifying income level and the owners don't file jointly?
Yeah, not sure what @JasSwitch7's full situation is, but sounds like Primary might have insufficient tax liability to get the full value of the credit while Secondary might both have the liability and be under the income threshold for 2023. I've seen various posts of people buying with non-jointly-filing co-owners such as siblings or parents or (non-dependent?) children, so hopefully this helps those who were trying to get the official form filled out correctly with Secondary's information (and presumably submitted to IRS).
Now in 2024 with point-of-sale and the recent change to Tesla's backend of generating Secondary registrant 15400, this could mean it's possible to get $7500 taken off the purchase price by adding a Secondary who is under the income limits. (I believe I've seen at least one post where someone "paid" an extra $250 to re-order again but switching Primary and Secondary effectively getting a $7250 credit, so presumably this won't be necessary now.)
Wow, I have no idea how I missed that you were replying to a post (on that topic).
Good news.
All in all, waiting till 2024 might have led to a lower price on the MY and a simpler tax credit process. Live and learn.
Better be careful about the exact interpretation of the rules on income limits, A workaround scheme may not be safe. The IRS likes jail for fraud....
Correct, I personally do not have enough tax liability to take advantage of two (2) $7,500 credit when I co-signed a Model Y LR in December 2023. I would have probably lost half of the second credit if Tesla did not fix the issue (secondary registrant; fixed in mid-January 2024).
The IRS guidance is that either purchaser on the title can claim the credit and eligibilty is solely determined by their individual situation.
https://www.irs.gov/pub/taxpros/fs-2023-29.pdf
For a purchase today, can our expected 2024 income be used for qualifying for 7500?. Asking since ‘22 and ‘23 are above limit. But unsure how to prove to IRS that eligibility until next April. Does Tesla apply the POS credit in this case and let buyer prove eligibility to irs next April? Thx
For the 2024 credit you can use the lesser of your MAGI for 2023 or 2024
MAGI is modified adjusted gross income. A good explanation of how to calculate it is found in this article:
www.nerdwallet.com
MAGI is modified adjusted gross income. A good explanation of how to calculate it is found in this article:
MAGI: Definition and How To Calculate - NerdWallet
Learn how to calculate your modified adjusted gross income (MAGI) and what you can use it for.
If you expect your 2024 income to be under the limit, you can take the point of sale credit. If you end up being over the limit come filing time, your tax liability goes up by the amount of the credit.
Topic B — Frequently asked questions about income and price limitations for the New Clean Vehicle Credit | Internal Revenue Service
Frequently Asked Questions about income and price limitations for the new Clean Vehicle Credit.
www.irs.gov
Topic B — Frequently asked questions about income and price limitations for the New Clean Vehicle Credit | Internal Revenue Service
Frequently Asked Questions about income and price limitations for the new Clean Vehicle Credit.
Q1. Could my income level prevent me from taking the New Clean Vehicle Credit? (updated Oct. 6, 2023)
A1. Yes. You may not claim the credit if your modified adjusted gross income (AGI) exceeds certain thresholds. This limitation is based on the lesser of your modified AGI for the year that the new clean vehicle was placed in service or for the preceding year.
If your filing status changes between the preceding year and the current year, you may claim the New Clean Vehicle Credit if your modified AGI is less than or equal to the threshold applicable to your filing status for in the preceding year or current year.
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