US Federal $7,500 Electric Vehicle Credit Expiry Date By Automaker

[gochin23]

I couldn't find a general tax topic in either the general EV section and the Model specific section isn't great either since this isn't Tesla specific either but...

Filed on 2-3
Showed on IRS WMR site as received on 2-4
Remained that way until today 2-21, shows NO bar status of (received, approved, sent) and the message "...still processing".

I just checked again and mine also changed to this. It also said a refund date will be provided when available.

 

[opiuman]

I just checked again and mine also changed to this. It also said a refund date will be provided when available.

I ended up pulling my IRS transcript and shows a refund date of the 26th. WMR has no change.

 

[FlatSix911]

Interesting reading... U.S. Federal EV Tax Credit Update For January 2019

 

[gochin23]

I ended up pulling my IRS transcript and shows a refund date of the 26th. WMR has no change.

thanks for the heads up! just checked WMR and it moved to accepted and shows that the refund will be sent on 2/26.

 

[gochin23]

FYI for those who have filed and are awaiting their refund which include the EV credit, I just received mine!

 

[oldpueblo]

Does anyone have an example of a filled out tax form for the model 3 specifically? I don't have it in front of me but I recall there were a few places that weren't immediately clear.

 

[dsvick]

Does anyone have an example of a filled out tax form for the model 3 specifically? I don't have it in front of me but I recall there were a few places that weren't immediately clear.

It's pretty straight-forward, you can find the form and instructions here: About Form 8936 | Internal Revenue Service

I'd read all of that and then, if you have any specific questions, come back and ask them.

 

[Snow Drift]

Got my $7,500

E-filed on 2/6, deposited 2/27. The IRS status website eventually gave the date of 2/27 and it was on time.

TurboTax did ask additional questions like price and gross vehicle weight...I suppose in case I was eligible for the Hummer loophole. Besides that, very straightforward.

 

[CamDLux]

I e-filed via TurboTax on Feb. 10. The $7500 EV credit was fully applied and my refund was deposited on Feb. 28th.

 

[Chrisedge]

So just to be clear, the federal process is (for a 2019 purchase):

Fill out form 8936 and file with next years taxes?
Taxes lowered by $3750 (for May 2019 purchase?)

Is there anything I need to do NOW? I filed the California and my Electric company rebates.

 

[mongo]

So just to be clear, the federal process is (for a 2019 purchase):

Fill out form 8936 and file with next years taxes?
Taxes lowered by $3750 (for May 2019 purchase?)

Is there anything I need to do NOW? I filed the California and my Electric company rebates.

Yep, you must take delivery before July for a non-refundable $3,750 credit. You can also adjust your W-4 to reduce withholding to recoup the credit sooner (remember to reverse it in 2020).

 

[Roman92]

Yep, you must take delivery before July for a non-refundable $3,750 credit. You can also adjust your W-4 to reduce withholding to recoup the credit sooner (remember to reverse it in 2020).

Elaborate? I thought I was tax liability and has nothing to do with adjusting withholding s? And End of quarter is June? So doesn’t have to be in hand by June 30th?

 

[TT97]

Elaborate? I thought I was tax liability and has nothing to do with adjusting withholding s? And End of quarter is June? So doesn’t have to be in hand by June 30th?

What @mongo was getting at is that if you adjust your withholdings, you can basically get the $3,750 this year instead of waiting until your refund in 2020. It's easy to do, just need to adjust your W-4 with your employer (assuming you are not self-employed) but you need to remember to reverse it next January. If you are not comfortable tinkering with the W-4, it's not that big of an issue (you are just giving Uncle Sam an interest free loan for a few months).

And yes, quarter end is 6/30 (which is the same as "before July").

 

[wdolson]

If your withholding is much more than your tax liability, then you are giving the IRS a free loan until the following spring. So if you adjust your withholding, you can get your money sooner rather than later.

 

[ChrisH]

Elaborate? I thought I was tax liability and has nothing to do with adjusting withholding s? And End of quarter is June? So doesn’t have to be in hand by June 30th?

If the other answers didn’t clear it up for you, basically increase your allowances on your W4 so that you get $3750 more in your paychecks over the next 8 months or so and then put it back to normal next year. Your taxes will initially look like you owe ~$3,750 more than normal but the credit will balance that out.

 

[Runt8]

Just make sure you're actually eligibly for the credit (ie, have at least $3750 in liability, which generally isn't difficult for someone who can afford a Tesla but it can happen) otherwise you will be on the hook for it come tax time (and possibly some penalties as well).

 

[MoHazee4]

Is anyone aware of any person who bought a Tesla (any model) -- snagged the tax refund -- then sold the car? And pocketed the $7,500?

A new car bought 6 months ago - will depreciate some -- but, shouldn't depreciate up to $7,500 ... thus my question.

You could probably do this with any EV eligible for the credit.

I could see the appeal for someone to buy every EV eligible for the $7,500....sell them right away...and get the tax credit, for every one of them. You're guaranteed to come out ahead, maybe? Who's with me?

 

[ChrisH]

Is anyone aware of any person who bought a Tesla (any model) -- snagged the tax refund -- then sold the car? And pocketed the $7,500?

A new car bought 6 months ago - will depreciate some -- but, shouldn't depreciate up to $7,500 ... thus my question.

You could probably do this with any EV eligible for the credit.

I could see the appeal for someone to buy every EV eligible for the $7,500....sell them right away...and get the tax credit, for every one of them. You're guaranteed to come out ahead, maybe? Who's with me?

This is illegal. You have to intend to keep the car. Now, no one may ever know you did it, but I believe it is still against the law. If you get audited they may also ask for proof of ownership of the vehicle.

 

[Roman92]

I thought it didn’t matter what I claim. For instance I had a tax liability of 7k this year but didn’t owe anything and got a little bit of a refund. Wouldn’t I still get the 3750 credit and just get it on my refund?

 

[wdolson]

Is anyone aware of any person who bought a Tesla (any model) -- snagged the tax refund -- then sold the car? And pocketed the $7,500?

A new car bought 6 months ago - will depreciate some -- but, shouldn't depreciate up to $7,500 ... thus my question.

You could probably do this with any EV eligible for the credit.

I could see the appeal for someone to buy every EV eligible for the $7,500....sell them right away...and get the tax credit, for every one of them. You're guaranteed to come out ahead, maybe? Who's with me?

The used market mostly took that into account. Unless the Tesla was a new version in high demand (the first few months of the Model X and 3 saw high resale prices), selling the car used to less than a $7500 delta was pretty tough. Performance cars keep depreciating, but the depreciation slows down for other Teslas after the first $7500 drop. Model S and X still depreciate a lot compared to high demand mid-priced cars.

For other EVs, the depreciation is a cliff. You can pick up a 2 year old Leaf for less than $20K.