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.
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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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And "regularly"? You have been buying multiple new cars in the last 6 months?
Another thing people need to think of going to an EV or Tesla is there is hardly any maintenance except tires. No more oil changes, brakes last at least 100,000 miles, etc.
I am on my first EV, a refresh Tesla Model S and amazed that I no longer have to go the dealership for all the crazy maintenance an Ice car has. I also charge at home 88% of time, so saving at lot of money on gas, as I drive about 22,000 miles a year.
Tesla has the best Superchargning network by far. I would not even buy an EV that is not a Tesla yet if you travel at all, as the non Tesla charging networks are unreliable. Hope that changes soon, but Tesla is just so far ahead in their charging network.
Another thing people need to think of going to an EV or Tesla is there is hardly any maintenance except tires. No more oil changes, brakes last at least 100,000 miles, etc.
I am on my first EV, a refresh Tesla Model S and amazed that I no longer have to go the dealership for all the crazy maintenance an Ice car has. I also charge at home 88% of time, so saving at lot of money on gas, as I drive about 22,000 miles a year.
Tesla has the best Superchargning network by far. I would not even buy an EV that is not a Tesla yet if you travel at all, as the non Tesla charging networks are unreliable. Hope that changes soon, but Tesla is just so far ahead in their charging network.
Lots of people have thought of this. Almost every couple of pages for 90+ pages.
Sadly now, as then, it's not at all how the tax credit works. As also explained every couple of pages for 90+ pages now.
Line 24 on your 1040. That's the only thing that matters. If that # is $7500 or more you get the full $7500 credit. If it's lower you get whatever that # is.
Your withholdings are totally irrelevant to this.
i am genuinely interested in your answer since I have been shopping for a car for my daughter for the last 10 months, so yes, i know the price trends.
You don't know what is no luxury compact suv? So many brands, Honda Toyota Mazda Ford Subaru ... have some common sense man
Incorrect— It is a tax credit, not a rebate. My tax man informed me of this. Also, it is one time, meaning it cannot be carried forward in case you were not able to exhaust the entire credit in your next filing. I would owe roughly 3k in taxes next year, the 3k would be subtracted from the 7.5k Thats the only credit i would have received. I would lose the rest 4.5k since I did not owe the IRS $7500. Hope that helps,
Sadly now, as then, it's not at all how the tax credit works. As also explained every couple of pages for 90+ pages now.
Line 24 on your 1040. That's the only thing that matters. If that # is $7500 or more you get the full $7500 credit. If it's lower you get whatever that # is.
Your withholdings are totally irrelevant to this.
You can bet a large percentage of people will not know how to claim this correctly, just like so many have trouble filing taxes, and thats extra money for the govt and Tesla, and they are counting on it.
Its an anti consumer practice no matter how you look at it.
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that 7500 credit is nothing to do with how much you have paid. it has everything to do with how much total taxes you are supposed to pay for the year. if that is more than 7500, you get full credit. if you have already paid more than that, you get 7500 back. if you have paid zero and you are supposed to pay lets say 8000 for the year, you pay only 500.
how difficult this math can be to understand?
Yes. Check out TeslaLife - it's the new VanLife. People living in their electric vehicles, sleeping next to charging stations (the new Walmart), powering their remote work life off their electric vehicles. TeslaLifers highly recommend buying the Y with the premium data package ($99 per month). TeslaLife is still recommended for people 5'6" or less (the space when the rear seats are folded down and your body is partially in the 'trunk').
I don't think that's what owing taxes means
1. You are poor (been there) thus you can't afford this car, and already don't pay taxes, in fact get free gov money, nuff said. (The gov is not giving ANYONE 7500!)
2. You make up to 150k (single) or 300k (married) then pay actual taxes (generally) so you can get 7500 of those taxes wiped off your tax bill. Assuming you already paid in and/or owe 7500, or more. The gov gave you no money!
3. You make over those limits, you either live somewhere you can't afford, or manage your money poorly, and choose to complain about your entitlement (or lack of, in this case) since you don't get the 7500.
Nobody can get mad about #2, if you manage your finances correctly, are comfortably in the middle class, you can now (maybe) afford a car that was previously out of reach.
If you are #1, stop complaining and do something about it. Maybe learn how to do your taxes and go work at H&R Block doing taxes of those too dumb to do it themselves, you've stepped up in the world and can (maybe) afford this deal.
If you're in the third group, this is where YOU should be paying more taxes anyway, so zip it, and stop being selfish.
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