Will I qualify for the federal tax credit?

[mjwojtukiewicz]

Because without the $7500 tax credit he would have owed an additional $4,000 ($8,000 tax liability - $4,000 in pre-payments = $4,000 remaining to be paid to satisfy your tax liability).



These are round number examples to illustrate a point and help you understand the difference between tax liability (what you actually owe) and withholdings (pre-payments over the year to offset what you actually owe).

You left out the $8000 tax liability part in your initial post.

 

[ucmndd]

You left out the $8000 tax liability part in your initial post.

Eh? Try again.

An example:

You earned ~$80k in income, complete your form 1040, and your tax liability after deductions, etc. is calculated to be $8,000. This means you owe the government $8000.

Anyway. I can’t keep finding different ways to make you understand this, so I’ll say it one final time, and then ride off into the sunset:

The amount of taxes you have withheld from your wages via your W4 has 100% unequivocally absolutely nothing to do with eligibility for the $7500 EV tax credit. There is no connection whatsoever. If you still don’t understand, I’m not sure what else to say.

I'm tired of this. Just trying to put it out there that you don't magically get $7500 no matter what your financial condition.

Of course you don’t. There are income requirements, both on the bottom end and top end.

But changing your W4 as you recommended to OP in your first post does absolutely nothing to change how much of the $7500 you get.

 

[Whatstreet]

It looks like the IRA rules are changing. Biden has altered the definition of an SUV and so they all have an $80K price cap. That will put the Model Y Performance back on the table.

 

[ramanv]

Tesla’s complete lineup of Model Y trim levels now qualifies for electric vehicle tax credits through the Inflation Reduction Act, as the Internal Revenue Service (IRS) has increased the applicable MSRP limit to $80,000 across each of the all-electric crossover’s configurations

Qualifies model

 

[Spinkick]

Caveat emptor, we dont know when the goalposts are going to get moved