Detailed Answer:
Step 1: Look at Line 11 on your 2022 Tax return (Form 1040).
Step 1a: For the vast majority of taxpayers this won't apply: Add to Step 1 any income from Puerto Rico you excluded, any housing exclusion foreign income you claimed (Lines 45 and 50 of Form 2555), and American Samoa residential income excluded (Line 15 of Form 4563).
Step 2: If that number is less than:
$300,000 Married Filing Jointly
$225,000 Head of Household
$150,000 Single and any other filing status
then continue to Step 3. Otherwise, you currently DO NOT qualify for any rebate, and will need to reduce that number on your 2023 Tax return below those limits. You can reduce that number by traditional 401k contributions, or some small-business options.
Step 3: Look at Line 24 on your 2022 Tax return (Form 1040).
- If it is greater than $7,500 and your income in 2023 stays the same or increase, you will get the full $7,500.
- If it is less than that, you get that amount (assuming your income stays the same). If your income increases then you may get a larger refund, up to $7,500.
In other words, in order to get the full tax credit, you must OWE at least $7500 in taxes and be under the income limits.
You absolutely CAN NOT carry over for a few years, or even one more year. It is a one time credit. Any unused credit is LOST!
Q7. Is the new clean vehicle credit refundable or able to be carried forward? (updated March 31, 2023)
A7. The new clean vehicle credit may only be claimed to the extent of reported tax due of the taxpayer and cannot be refunded. The new clean vehicle credit cannot be carried forward to the extent it is claimed for personal use on Form 1040, Schedule 3, Additional Credits and Payments.
from page 3 of this IRS document: https://www.irs.gov/pub/taxpros/fs-2023-08.pdf
* If you're concerned about battery degradation, you can take a look at this site [teslalogger.de] (Pull down the menu for Model Y LR)
* If you like to nerd out on graphs, data, and overal health of your vehicle, get a program called teslamate that can be installed on your home server. every time your car parks in your garage it will send driving telemetry data to it with pretty graphs [teslamate.org] and all.
* You can also opt to get teslausb [github.com], which can wirelessly send all your dashcam footage to your home server every time you pull into your garage.
Top Comments
EV good if you have a dedicated charging station at home.
if you live in an apartment complex or condo its not as consumer friendly, unless you want to pay up the wazoo at supercharger stations and inconvenience yourself by having to go there every time to charge. Go to plugshare.com to see how much you will be paying in your area. Just multiply cents * 45kwh (assuming you're charging from 20% to 80%). For my area I would be paying $20-$25 per charge at a supercharger station. At home, with the national average electrity rate of 0.14 / kwh, it would cost $6
if you live in california, don't forget that you can also get another $2k in CVRP rebate. you get a check in the mail but the wait time is long to get it.
also don't forget about the single occupant HOV lane decal you can sign up at the DMV website.
basic autopilot is more than sufficient. autopilot still has a long ways to go imo. definitely not worth getting the advanced AP and definitely not full self driving at $15k. as MKBHD always says, don't buy a product on a promise of features yet to come.
also, make sure you setup your electricity usage to "time of use" or EV-specific plan as your bill will assuredly go up. Don't be on those tiered plans. Yes, you will end up saving money compared to ICE vehicles paying for gas, unless you get a hybrid, which is a bit more comparable, especially in areas where electricity is expensive.
additionally, people forget that you need to install a wall connector or mobile connector in your home. equipment costs $230 for the mobile connector +$45 for the nema 14-50 adapter, which is good enough especially if you do scheduled charging at night to save on electricity. installation itself will vary depending on your region and how much electricians will charge you, but it can get expensive. just make sure you're not getting ripped off as electricians are aware of the EV craze and asking for higher premiums on them. installation can go anywhere from $1k-$2k+. (according to poster SamirPD, you can ask the electrictian to install a dryer outlet and it should save you money and prevent you from being ripped off). One worthy note, EV charger and installation is tax deductible at 30%, just need to fill out the tax form [irs.gov] when you do your taxes next year. EDIT: SD poster hiro916 indicated that the 30% tax deduction only pertains to low income or rural tract areas, so YMMV [reddit.com].
as for car insurance, I'm paying $95 a month through Geico, but thats with a robust policy.
if you are impatient like me, and want to get one right away without having to wait, go to the waitingfortesla discord server [discord.com] and setup alerts for any time a Model Y drops in your local area. You have to act quick as they get snatched up relatively quickly. You can see whats in inventory on their website too [waitingfortesla.com]. Don't expect to see base model Y LR coming into inventory. If you want to pick something up quick settle for the 20 inch induction wheels (costs $2k extra) as they are more readily available. You can always sell the tires if you want to recoup some of the costs and get an aftermarket hubcap that look better than stock anyhow.
If you're interested in a real world range comparison of current popular EV's check out this YT video [youtube.com].
once you pick up your car you have 100 miles and 7 days to report any defects. panels gaps aren't as much of a problem anymore compared to years past, but be on the lookout for them. paint quality isn't so great out of the factory, mine came with swirl marks all over and had to get it paint corrected.
if you're concerned about battery degradation, you can take a look at this site [teslalogger.de] (select dropdown and look for Y LR AWD US to see the average degradation over time based on mileage. on average after 50k miles you should see about a 10% degradation, and it will degrade more slowly 50k+ miles onwards.
in terms of accessories, the only real requirement imo that you need are mud flaps. reason being is because without them, the rear passenger quarter panels will get hit with rock chips very quickly. tesmanian is a good aftermarket seller, or you can just opt for ones you see on amazon. if you want to go deeper into accessories temu is a great site for low prices compared to amazon.
if you like to nerd out on graphs, data, and overal health of your vehicle, get a program called teslamate that can be installed on your home server. every time your car parks in your garage it will send driving telemetry data to it with pretty graphs [teslamate.org] and all.
you can also opt to get teslausb [github.com], which can wirelessly send all your dashcam footage to your home server every time you pull into your garage.
my personal thoughts on ownership thus far. overall i like it. i am using it as a daily driver / commuter car. i don't think of Model Y and 3 as a 'luxury' vehicle. I see Tesla as a software company trying to be an automaker, and the legacy automakers are trying to be more like Tesla by being more tech focused. Teslas are continuously getting software updates to improve year over year. Interior build quality is spartan, and the ride quality need some improvement, especially if you are in an area with poor road conditions. if you're really into tech like me, this is the car for you. Performance vehicles I still prefer ICE cars over EV's however. first thing you will notice in an EV though, is the instant torque. that is what will grab you immediately.
If you have questions and need instant feedback join the Tesla discord, I'm active on there and other members can assist with questions you may have: https://discord.com/invite/tesla
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Details here:
https://www.irs.gov/credits-deduc...3-or-after
We need more competition.
These Tesla should be closer to $35k.
And if you need further validation, try using Autopilot or FSD for any prolonged period of time on anything but an abandoned road. Phantom braking is ridiculous and would definitely have been offset by other, non-vision technologies.
Were you to still be unconvinced, have a look at the parking assist functionality rolled out recently. It's a disgrace, getting mocked by Tesla owners left and right.
I love the car for it's general function, but Musk really overpromised and really delivered nothing as far as FSD and Autopilot are concerned. I've got a 5 year old Dodge Durango whose laser aided cruise control works better than my 22 MYLR.
The vision-based solution is also a perfectly rational engineering direction. Humans do not use any other driving aids than vision to navigate. Our network of drivable surfaces is built specifically for vision-based driving only. The extent to which other technologies such as radar, laser, and ultrasonic sensors can assist with some specific subset of problems, they are incomplete and are ultimately unnecessary. That said, it is a reasonable critique that Tesla has chosen to implement a vision-only system with cameras that do not provide enough resolution or dynamic range and the lack of stereoscopic coverage at all angles.
I do have to say though, I have another gas car that I use for long road trips cause I don't want to go out of my way to charge.
An EV is a no brainer if 1)you can charge at home or at work 2) you live in a warm area 3) gas prices by you are expensive 4) you have another car for longer road trips. And at these prices with a tax credit, they're practically giving them away. $42.5k after tax credit is insane!
he is not describing either of the two scenarios you brought up.
Since I've already paid $10k in taxes to the IRS throughout the year and don't owe any additional tax, would I still get the $7500 credit refunded back to me from the IRS?
Or come tax time do I need to owe the IRS an additional $7500 in taxes to be able to get the full $7500 credit? Thanks to whoever clears this up.
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On the 1040 form, line 15 taxable income is $106K; line 16 is the tax on that $106K, which turns out to be $14K; now you subtract any available tax credits from the $14K tax amount--in the case of the EV tax credit that amount is included in line 20 (Amount from Schedule 3, line 8; note--Schedule 3 is where you would input any EV-related credits from Form 8910 and/or 8911); in this example line 20 is $7.5K which is the sum of all Schedule 3 credits (including the $7500 EV tax credit). When all is said and done, total tax has now been reduced from $14K to $6.5K on line 24 (assuming no Child tax credit or other taxes). Carrying this example further, federal tax withheld was $17K; without the Schedule 3/EV credits you'd get a refund of $3K, but because the EV tax credits dropped the tax down to $6.5K you'd now get a refund of $10.5K. In order to incur at least a $7500 tax liability your 2022 taxable income (line 15) needs to be at least $54K if filing single or married filing separately, $65.9K if married filing jointly, $60,850 if head of household.
Think I'm wrong? Amounts from Form 8910 (Alternative Motor Vehicle Credit--this is where you claim the $7500 EV tax credit amount) and/or Form 8911 (Alternative Fuel Vehicle Refueling Property Credit--this is where you can claim 30% credit for EVSE charger purchase and installation costs) are entered in Schedule 3 line 6e and 6j respectively, with the amount in Schedule 3 line 8 (which is the sum of all credits claimed in Schedule 3) then being applied to 1040 line 20. The amount shown in 1040 line 20 goes towards reducing the tax amount shown in 1040 line 16, so again, line 16/18 needs to be at least $7500 if you are wanting to take full advantage of the entire $7500 tax credit amount; otherwise you can still claim the EV tax credit but you won't be able to take full advantage of it since you can't have a negative tax liability.
Note--technically 1040 line 18 should be used for the above example, but unless you are also filing a Schedule 2 you can simply use line 16 instead.
Bottom line--if you want to be able to take advantage of the entire $7500 tax credit, Form 1040 line 18 (or line 16 if line 18 is empty/zero) needs to be at least $7500 (or more if you intend to also claim the Child tax credit--line 19) since the amount from Schedule 3 (which again, is used to specify certain other qualifying credits inclduing EV credits) is subtracted from line 18. If line 18 was $5000, subtracting $7500 from it would give you 0 (since you can't specify negative amount here)--meaning you would not be able to take advantage of the entire $7500 credit...not the worse thing to miss out on since any tax credit is better than no tax credit.
There's a reason why it's labeled as a "credit", not a "rebate" or "refund"--it is meant to help offset/reduce your potential tax liability; the $7500 tax credit simply means your tax liability could be reduced by as much as $7500--e.g., if line 16/18 says the tax is $7500, then with the $7500 credit applied the tax is now $0; if you had any amount of federal tax withheld, then with a net $0 tax liability you will get back every last penny of that withheld tax amount as a refund.
Since I've already paid $10k in taxes to the IRS throughout the year and don't owe any additional tax, would I still get the $7500 credit refunded back to me from the IRS?
Or come tax time do I need to owe the IRS an additional $7500 in taxes to be able to get the full $7500 credit? Thanks to whoever clears this up.
Since I've already paid $10k in taxes to the IRS throughout the year and don't owe any additional tax, would I still get the $7500 credit refunded back to me from the IRS?
Or come tax time do I need to owe the IRS an additional $7500 in taxes to be able to get the full $7500 credit? Thanks to whoever clears this up.
For people that have deductions or kids, you'll get a lesser amount if your income is only $75k.
I do have to say though, I have another gas car that I use for long road trips cause I don't want to go out of my way to charge.
An EV is a no brainer if 1)you can charge at home or at work 2) you live in a warm area 3) gas prices by you are expensive 4) you have another car for longer road trips. And at these prices with a tax credit, they're practically giving them away. $42.5k after tax credit is insane!
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