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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I mean look at all of the people burned from the last frontpage deal. Car is $6K less now, and that isn't even counting all of the people who bought from the FOMO thread in December. They are out like $15K.
Don't try to point this out though, or any faults with Tesla or the whole EV thing, your post will be deleted. Only sunshine and rainbows posts are permitted.
SD should be ashamed of themselves. but it isn't about integrity, it's about clicks.
It is true for the USED EV credit though (which has a bunch of other limits on it too... car must be of a certain age, under a certain price, etc)
none of the other recapture stuff you cite is true either of the new car credit.
What's funny is you didn't notice none of the "rules" you claimed applied to this credit appear in the actual IRS link YOU posted
That's because the IRS link is talking about the current new-EV consumer credit.... not the one your turbotax software was talking about.
Where are you finding 8 people to pay you full MSRP for a used car they themselves will get no tax credit on like they could a new one?
The fact those buyers don't exist is why it's a ridiculous idea.... NOT any imaginary "once every 3 years" rule that doesn't exist for this credit.
You could be right on your points. Like I said, tax code is ridiculously complicated and the rules applying to the old tax credit may not apply to the new. I have no vested interest in checking so I won't.
On the point about finding 8 people to buy a car full MSRP though, I could probably get someone to buy the car for $1-2k off MSRP though. These would be people who never qualified for the tax credit to begin with (say a corporation or someone who makes over $300k).
On the point about finding 8 people to buy a car full MSRP though, I could probably get someone to buy the car for $1-2k off MSRP though. These would be people who never qualified for the tax credit to begin with (say a corporation or someone who makes over $300k).
Corporations CAN qualify for it though-- especially because they'd have access to corporate leasing companies who can take the full credit.
I'd be pretty surprised if you could find any people making >300k a year who would buy a used car for 1-2 off MSRP as well... but if you could then there ya go, just go do that a bunch of times.
Oh, you'll also need them to cover your sales tax, title and destination fees, and all the other costs associated with first possession of the thing.
Best of luck!
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This can and should be used by you to post updated deal information.
Be sure to read this because it may contain answers to your questions!
Will I get the full $7,500 tax credit?
Answer: Look at Line 16 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).
In other words, in order to get the full tax credit, you must OWE at least $7500 in taxes. I think you can carry over for a few years, but double check before you assume anything.
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
Don't forget that if you don't have enough income to have that kind of tax, but you have an IRA or a 401K, or a TSP you can create tax by converting it over to the after tax ROTH. Once you convert to the ROTH and pay the taxes there is no more tax on that money or anything it makes in the future. That could really turn into a lot of money for people. Just consider it.
I mean look at all of the people burned from the last frontpage deal. Car is $6K less now, and that isn't even counting all of the people who bought from the FOMO thread in December. They are out like $15K.
Don't try to point this out though, or any faults with Tesla or the whole EV thing, your post will be deleted. Only sunshine and rainbows posts are permitted.
SD should be ashamed of themselves. but it isn't about integrity, it's about clicks.
Model Y pains.
]Quality of map in navigation system is not as good as Google or Apple Map;
Miss the option of Apple CarPlay;
Voice command works well but still end up using the touchscreen just as often and it can be a pain to use while driving
Several cameras around the perimeter of the car but the quality of the video is absurdly poor in 2023; strong sepia/amber tint such that accurately telling what color a car is that is on your side is difficult
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Add 30% higher insurance to your mileage. That is an additional ~ $1.2k per year. The higher insurance will eat up all your gas savings. Have you tried to repair dents on your Tesla? I'm not even mentioning that you are paying a premium price for the EV to begin with.
If "move itself in stalled traffic but can't self drive itself without limitations" was the criteria, then Tesla would be Level 3. But it isn't.
This aside, anyone knows if Tesla is passing the 7500 down to the buyer on leases?
Model Y pains.
]Quality of map in navigation system is not as good as Google or Apple Map;
Miss the option of Apple CarPlay;
Voice command works well but still end up using the touchscreen just as often and it can be a pain to use while driving
Several cameras around the perimeter of the car but the quality of the video is absurdly poor in 2023; strong sepia/amber tint such that accurately telling what color a car is that is on your side is difficult
I think the main challenge with no USS at least to me is more when I need to parallel parking which I think is where USS is much sorely needed. I am not as worried about just regular front and back parking.
Wish it had ACP and AA but it is what it is. Its not the biggest deal breaker in the world.
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In a similar manner 99% of climate scientists say humans are contributing to rising temeratutes on planet earth. My guess is you are not the 1% of climate scientists who can really refute that claim.
Not sure anyone wants global warming to be real, but to stick ur head in the sand is a little different.
This isnt a call for all to go take advantage of this ev deal, for some people its not feasible, possible, etc... totally get it, but one day that will probably change.
Id do the opposite if i was u, tell everyone to get an ev so the gas prices go down and lines get shorter.
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