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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But I did rough calculation that $500k -35k ss/med tax - $130k federal tax - 50k state/local tax - 90k contribution to hsa/roth/401k = 200k.
We can argue how to manage the remaining but I don't see a way to get higher net income. Can you provide some advice?
It is off topic from model Y anyway. Just complaining the car is too damn expensive.
But I did rough calculation that $500k -35k ss/med tax - $130k federal tax - 50k state/local tax - 90k contribution to hsa/roth/401k = 200k.
We can argue how to manage the remaining but I don't see a way to get higher net income. Can you provide some advice?
It is off topic from model Y anyway. Just complaining the car is too damn expensive.
If you live within your means, and invest intelligently, you should not be living paycheck to paycheck, and getting all the tax breaks you legally can. If that allows you to afford an expensive item, great, if not, change something.
I've had 2-3 jobs my whole life, with two kids for most of it. This isn't impossible to afford if you manage expectations, needs, and wants, properly.
On the other end, poor folks can work VERY hard and get nowhere. This is usually fixable, if one looks outside their comfort zone. However until you get that kick (which is absurdly hard in the US) it feels impossible. Adding the cost of a new car, or any debt really, just prevents that kick from ever happening.
It's families making under 100k (anywhere) that need actual tax dollars from the rest of us. It's a fine line, I'd happily pay more taxes if it was the law (I'm selfish too) but I sure as hell won't complain about having to pay taxes. And I still expect those struggling to in fact work.
I've taken handouts when I was desperate, seeing others do it when they simple "survive" in that lifestyle, I don't condone. Unfortunately tons of folks do that even when taking out loans, they are the ones complaining about this particular tax situation, upset they can't take advantage of it.
Those lists don't mean anything because they all look at starting msrp. You can't just look at some car's starting msrp. Those cheaper trim levels are trash. You have to compare mid to upper trim levels. Model Y only has a single trim level and the only major options are FSD, wheels, and paint color. That's it. So you can't compare a car with cloth seating, no heated seats, etc. Also, a third of those on the lists are subcompacts. Even some of those so-called "compacts" on the lists are noticeably smaller than the model y. So take away the subcompacts and smaller compacts, and none of those on the list with mid to high trim level costs 30k or less.
My TOU-Prime plan from socal Edison has higher rates only from 4pm-9pm. The rest of the hours are identically priced. Is yours the same?
Why don't we try to at least keep more objective? I don't care what interior you think is "better or worse". It's subjective. How about just say leather/leatherette seating? ALL manufacturers consider cloth seating as the cheaper option and leather/leatherette as the more expensive option. All Model Y comes with leatherette seating, so let's just find that comparable shall we? What is your 30k suv in this size class with leather/leatherette seating? That should keep it simple enough.
And for the last time, give me a make AND model. You say Honda but won't even say a model. What are you afraid of? Are you saying a Honda Fit has a better interior than a MY? If you won't name a Make and Model then don't bother replying and I will just take my victory.
He doesn't have an AI company. He invested in it then left 5 years ago before it even became chatgpt. He tried to stop that same company from rolling out more features with chatgpt because he fears it's going too fast lmao.
Elon didn't even found Tesla. He invested in it and then named himself co-founder
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I should have done a little bit more homework before ordering but better now than never.
IRS 2023 Site: "The credit is nonrefundable, so you can't get back more on the credit than you owe in taxes. You can't apply any excess credit to future tax years."
I should have done a little bit more homework before ordering but better now than never.
IRS 2023 Site: "The credit is nonrefundable, so you can't get back more on the credit than you owe in taxes. You can't apply any excess credit to future tax years."
Any car can be leased for $399/month Heck any car can be leased for $99/month with enough cap cost reduction.
The $399 is an ultra-low mile lease, 10K/year with $4500 cap cost ($125/month) + TTL
For an effective $524/month + TTL for 10K a year...Not what would be considered slick in the leasing community.
I should have done a little bit more homework before ordering but better now than never.
IRS 2023 Site: "The credit is nonrefundable, so you can't get back more on the credit than you owe in taxes. You can't apply any excess credit to future tax years."
IRS is not stupid to make such rule as you interpret it.
Refundable/non-refundable credit is relative your total tax liability. It has nothing to do with whether you get a refund or underpayment of your tax when you file your tax return. In the other word, it has nothing to do with how your tax is being with held.
Let's make a example,
Say you are make $70k 2023 tax year and
- your total tax is $8000.
- your tax withheld is $9000.
- you have a refundable child tax credit of $1000.
- you bought a model Y so you a non refundable tax credit of $7500.
Then when you file you 2023 tax return, the refund you will get from IRS is:
- (8000 - 9000 + 1000 + 7500) = $9500
I should have done a little bit more homework before ordering but better now than never.
IRS 2023 Site: "The credit is nonrefundable, so you can't get back more on the credit than you owe in taxes. You can't apply any excess credit to future tax years."
so the EV tax credit SHOULD be applied to this and you WOULD receive a credit of the $7500.
i think the non-refundable credit only applies if you had NO federal tax liability for the year. like you didn't work and did not owe AND did not pay any federal taxes. in that case you wouldn't be receiving a refund check of $7500 because you paid no federal taxes.
getting a refund does not necessarily mean you did not pay any federal taxes. you may have withheld too much through your employer or had a bunch of tax credits or deductions at the end of the year to be applied to your tax liability.
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