It’s in a lot of people’s best interest to not fully educate the population on taxes. Sadly, people don’t take the time to learn it in their own.
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Tax Credit Question Is it true ?
- Thread starter weflybye
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If your total federal tax liability for 2023 is less than $7500, say $6000, you can claim $6000 from the tax credit. You can't carry over any unused portion of the tax credit to the following year.
If you estimate your income will exceed the single filing $150k or married, joint filing $300k limit make sure you max out your 401k and health spending account (HSA.) Unlike a flexible spending account (FSA) money you earn that goes into a HSA does not have to be spent by the end of the year. With a FSA you lose any excess unspent money in the FSA at the end of the year. Money in an HSA is never lost, can be used to pay for future medical, dental, prescription and other health care expenses. Money you contribute to a 401k or HSA will reduce your taxable income 1:1.
If you are retired, your income may not be enough to fully qualify for the $7500 tax credit. You can convert all or part of a traditional IRA account to a Roth IRA. The money you convert, put in the Roth IRA is taxable as ordinary income for the year, could enable you to qualify for the full $7500 tax credit.
If you estimate your income will exceed the single filing $150k or married, joint filing $300k limit make sure you max out your 401k and health spending account (HSA.) Unlike a flexible spending account (FSA) money you earn that goes into a HSA does not have to be spent by the end of the year. With a FSA you lose any excess unspent money in the FSA at the end of the year. Money in an HSA is never lost, can be used to pay for future medical, dental, prescription and other health care expenses. Money you contribute to a 401k or HSA will reduce your taxable income 1:1.
If you are retired, your income may not be enough to fully qualify for the $7500 tax credit. You can convert all or part of a traditional IRA account to a Roth IRA. The money you convert, put in the Roth IRA is taxable as ordinary income for the year, could enable you to qualify for the full $7500 tax credit.
TesslaBull
Member
The tax credit will lower your rent payment, if you choose to drive a car in the most expensive way possible.
It depends on whether the manufacturer chooses to pass on the tax credit to the consumer.
How Does The Tax Credit Work On A Lease?
When you lease a new EV, the tax credit still applies, but since it stays with the original owner, some brands may not pass on the credit. Even when they were eligible for a full $7,500 tax incentive, both the Hyundai IONIQ 5 and Kia EV6 didn't pass along the tax credit on leases.Alternatively, balloon financing can often promise consumers a lease-like payment with the chance to take advantage of the tax credit. For example, the Ford Mustang Mach-E doesn't offer the tax credit to lessees but does feature the chance to save when choosing a financing option called Ford Options Plan.
https://www.carsdirect.com/deals-articles/how-it-works-federal-ev-tax-credit
I wonder when we will know if whole $7500 tax credit is passed to the consumer on a lease. I went into a Tesla store today and asked an employee and his manager and neither knew how they were handling this scenario. I was ready to order a MYLR right then and there, but they were unable to find out and give me an estimated payment.
Leases do not have to adhere to the tax requirements that are in place for purchasing
After Price Drop, More Teslas Qualify for the Full Electric Vehicle Tax Credit in 2023 - Consumer Reports
I was explained the EV rebate in layman's terms and want to pass forward the information as it helped me clearly understand the situation that I am in. To qualify for the full $7,500, line 16 (tax) on your your tax return form 1040 needs to be $7,500 or more. Anything less than $7,500 will equal the amount of rebate you will qualify for. For example, if your 2022 tax return form 1040 shows $3,800.. You will only get $3,800. If it shows $5,200.. You will only get $5,200. Feel free to chime in and as always please consult with a trusted tax advisor if you are unsure of your situation.
Yes, I have had friends tell me that they are going to cut back on their overtime because it will put them into the next tax bracket and retroactively bill them more on previous earnings.
This is what happens when schools don’t teach any basic life concepts.
This is what happens when schools don’t teach any basic life concepts.
It helps with the narrative that the IRS is the boogeyman. None of it has to be true.
This is my simple understanding as to the Fed Tax Credit. We all pay our taxes based on the Adjusted Gross Income line on our federal tax forms. We take the AGI figure look up our tax liability off of the Income tax table for that particular year and based on your filing status. Our Tax liability is then calculated into the rest of your tax process. Finally we take the Fed EV tax credit and deduct it from this liability. If your liability is under $7,500 mean you pay no taxes that year. You do not get a rebate for the unused credit. Lets say your yearly W-2 deductions for the year was $7,500 and your tax liability from the tax table is $8,000 you would owe $500.00 for this years tax. If your W-2 Year Deductions is higher, then the difference is refunded to you. Do not confuse Tax Liability from Refund it is two different issue. The refund is monies returned to you after the Federal Tax Credit is applied and and your tax liability is deducted from your W-2 year deposited for that year. I know alot is involved here but it is simple to understand.
This statement is not correct. Many people can afford a tesla that have limited tax liability. As an example a disabled retiree who may less taxes based on his or her retirement statusTranslation: if you don't pay enough taxes to get the full $7500 credit, you probably shouldn't have bought a Tesla
TesslaBull
Member
You are 100% correct of course. I even thought about that when I made the comment; it really only applies to those who are still in the middle of their working years. Also, I'm the pot calling the kettle black; I'm nowhere close to being able to afford to retire and buying an expensive car with money I should be investing
I am saving $12 in gas though!!!! 
. Now I need to get solar to help my purchase decision be less dumb! Looking like Tesla for this as well since local companies are more then $10k higher.I was in a Tesla store yesterday and the associate and manager could not confirm nor deny
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