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To qualify for the federal tax credit, one must not exceed the following adjusted gross income limits:
$300,000 for married couples filing jointly
$225,000 for heads of households
$150,000 for all other filers
Federal EV Tax Credit is not refundable, which means one must have federal tax due to take advantage of it. If the tax due is less than the credit amount, one can only claim the credit up to the amount of the tax due.
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Here's how cheap you can get a new Model 3 RWD right now (including fed & local EV incentives):
• VT: $26,320
• MA: $26,830
• PA: $27,330
• MD: $27,330 - Delivered after July 1, 2023 https://marylandev.org/maryland-ev-tax-credit
• RI: $27,820
• DE: $27,820
• NY: $28,320
• CA: $28,330
• CO: $28,330
• CT: $29,030
• ME: $29,320
on top of above info federal, state and local incentive info that i posted , some employers are also providing ev incentive like exaple bank of america employees gets $5k incentive , in this case the best case scenario is like below
example scenario
• VT: $26,320 - $5000 bank of america employee ev incentive = $21,320
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CA CLEAN VEHICLE REBATE PROGRAM
$2K is available if your household makes <$200k.
There is an increased rebate of $7500 ($5500 on top of the $2k) available if you fall below income caps based on your household size.
Family of 4 max is $111k, Family of 6 is $149k.
This comes in the form of a check in 2-3 months. https://cleanvehiclereb
This is separate from the CARB Clean Vehicle Grants described below the dashes. It is possible to qualify for both, but the timing is different.
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And California residents that live in a disadvantage community (DAC) https://cleanvehiclegra
Disadvantaged communities are determined using CalEnviroScreen (https://oehha.ca.gov/calenviroscr...
here's the DAC map: https://oehha.ca.gov/calenviroscreen/sb535
And receive an Approval Letter through email.
You must receive an Approval Letter BEFORE you purchase a vehicle. We do not offer rebates and you cannot redeem a grant if you have purchased a vehicle before being approved.
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Top Comments
https://www.tesla.com/model3/design
Deal is even sweeter if you live in a state with additional credits:
VT: $26,320
MA: $26,830
PA: $27,330
RI: $27,820
DE: $27,820
NY: $28,320
CA: $28,330
CO: $28,330
CT: $29,030
ME: $29,320
Full tax credit details below, but the following income limits apply:
$300,000 for married couples filing jointly
$225,000 for heads of households
$150,000 for all other filers
https://www.irs.gov/credits-deduc...3-or-after
Withholding is totally irrelevant to qualifying for the credit.
If you're unclear on this go read a 1040.
The part where you compute tax liability is lines 16 through 24.
THAT is where the $7500 EV credit comes off.
Your withholdings aren't even looked at until after that on line 25+
This is also not correct.
The Child Tax Credit is worth a maximum of $2,000 per qualifying child. Up to $1,600 is refundable for the 2023 tax year.
Refundable credits are computed AFTER non-refundable ones-- so the CTC is only "worth" $400 off your tax burden for these purposes- the $1600 left is refundable.
Thus if you had say $7900 in tax burden and one CTC and one EV credit, your tax burden would go to $0 and you'd get a full refund of the $1600 refundable part of the CTC
Source:
https://www.nerdwallet.
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1.8K Comments
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"Base Tesla Model 3 Inventory has $2,410 discount and now Qualifies for $7,500 Tax Credit"
That is factually correct-- and nothing you go on to complain about in the rest of your post is relevant to that title- so how's it misleading?
Rebate wont reduce the total amount of taxes you'll pay for the car. Nevermind the fact you need a wall/mobile connector and charger that is also taxed.
This is a 41k before taxes and 44.5k after taxes(not counting dmv fees). 44.5k - 7.5k = 37k.
30k + taxes is 32k. HUGE difference
... you realize taxes differ from place to place right?
And in some states the tax is...$0.
In my own state sales tax on 41k car would be $1230, not the 3.5k you claimed.
much much better quality EV
Until then, we're shopping between flip-cars and smart cars, and nobody in their right mind would call it shilling to state as fact that Apple was a pioneer in smartphones. Likewise Tesla is the Apple of cars today.
Which is why they have the number one highest selling model in the world right now, with zero paid advertising, just word of mouth. Butts in seats is how they got there, product sells itself.
You're free to shop as you like, but facts are facts.
And in some states the tax is...$0.
In my own state sales tax on 41k car would be $1230, not the 3.5k you claimed.
much much better quality EV
...you think a niche full sized sedan they barely sell any of, that starts at over $100,000 (and can get well over $150,000 when optioned) is a threat to the best selling mid-sized sedan in the world (they passed the Camry in Q1 2023, after coming in just behind in in 2022) that sells for 1/2 to 1/3rd the price?
That's... an interesting take.
much much better quality EV
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Look at the see the amount in line 24 of 1040. If that amount is more than $7500, then you owe more than $7500. If it is less, then you will have to manufacture some income to raise that amount to $7500.
IMHO, BEST method of manufacturing some income which is not detrimental to your finances would be to do IRA/401K to Roth IRA/401K conversion. If you have regular IRA/401K, then convert enough of them into Roth IRA (or Roth 401k if your work supports it) to manufacture some income which will be subject to tax up to $7500 income tax. It is free $$ and once in Roth account, that money will grow tax free.
Now, 2 potential issues:
1. State tax - you may be subject to state income tax on the amount converted.
2. once you convert the $$ to Roth account, you can NOT access the money for 5 years (without penalty) even if you will hit retirement age prior to 5 years from conversion year.
M3 = BMW M3
Maybe abbreviate Tesla Model 3 to TM3 to avoid confusion.
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