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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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It's been like that for months now.
Every new car sold in the US is charged a destination fee to the buyer as required by federal law.
I already cited part of the law that might explain it back on like page 2 or 3 of the thread... there's a couple of possible ways, but that's one of them (essentially the law allows you to average sourcing across all cars of a specific model made in the same factory-- and since the required % is only 40-50% this year it's possible for them to qualify for the full credit this way for a chunk of the year.)
Grossly false.
ICE cars catch on fire far more often than EVs.
And Hybrids, as always, are the worst of both worlds, catching on fire even more often than ICE.
The updated info from Tesla about them qualifying was published on 6/2.
The IRS gets their info from the car makers who all have to certify to the IRS what qualifies and how much-- so IRS has not updated the website yet to reflect the new info from Tesla
This, too, is wrong. A sedan over 55k gets nothing - it's a hard price cap.
There is no set of options that can put the RWD Model 3 above that cap (software options do not count toward the price for tax credit purposes federally)
The last price change on the base Model 3 was actually a $250 increase
Tesla adjusts prices multiple times a year to reflect various things- but sales continue to increase every quarter-- for years and years now.
From the bolt thread currently going on it appears it is....very challenging...to find a base model Bolt that doesn't have 10k or more of dealer markup.... If you ARE able to find one (and you're ok with the base model) then the price difference is worth considering.
If you're only able to find heavily optioned or marked up ones, perhaps not so much.
Outright false-- debunked not just by EPA testing but owners right here in the thread (and tons of other places)
Your refund is not informative. Look at line 16 of your 1040. Whatever that number is, the $7500 EV credit reduces it dollar for dollar until you run out of credit or you hit 0. If you have any OTHER non-refundable credits those would do the same.... and if you hit 0 and still have non-refundable credit left over then you lose the remainder.
Your withholdings, and refund, aren't even considered until later on the tax form.
When do I have to apply for this tax credit benefit?
( Since I already had filed the returns this April, should I amend my tax after purchasing ?
or Should I wait for next year tax filing ?)
When do I have to apply for this tax credit benefit?
( Since I already had filed the returns this April, should I amend my tax after purchasing ?
or Should I wait for next year tax filing ?)
it's weird you quoted my post, but did not actually read it.
Again-
The updated info from Tesla about them qualifying was published on 6/2.
The IRS gets their info from the car makers who all have to certify to the IRS what qualifies and how much-- so IRS has not updated the website yet to reflect the new info from Tesla
Anyway, the car maker says it's $7500 for the RWD, all the way back to April 18th (and was $7500 before then too due to sourcing rules not out yet)- this it's $7500 all year so far through today per the car maker- which is the actual authority on the subject that IRS uses to determine eligibility.
If your line 24 is lower than $7500 like say $5,000, then the credit will just make it 0 instead (-$2,500) which means the government won't refund you that $2,500.
it's not though.
Line 24 includes refundable credits.
It's line 18.
Some says, Line 24, some says Line 37.
What if line 37 is empty because most/all of the tax was paid upfront as part of paycheck (total paid taxes in advance, Line 33)
See above.
Look at line 18. That's the total amount you can apply non-refundable credits to.
If your only non-refundable credit is the EV credit then you need line 18 to be $7500 or more to get full value from the credit.
If you have other non-refundable credits as well you'd need it to be the sum of all of them to get full value from all of them.
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Big question is whether or not to wait for the refresh or try to snag an inventory base model right now (currently have a few nearby). Would be about 28k after all my tax credits not counting tax and misc fees. Probably around 31k in all. That's more than a used Civic but also getting a brand new car and EV vs ICE.
Not familiar with Tesla. Will they always have inventory models at discount or is this just making room for the refresh and won't last much longer? Some sites estimating the refresh to start at 41k. So about 4k more than inventory model now. Are the QC concerns with Teslas overblown? Is there even any guarantee a refresh will improve that if so?
I don't need a car right now…but I'm getting tired of chauffeuring my daughter everywhere she wants to go.
Edit: apparently electtirfy america has a 97% uptime not 50%.
https://www.eenews.net/articles/w...-breaking/
It's NOT about the uptime, it's about usability. Many users reported many different kinds of errors when trying to charge at EA.
Not familiar with Tesla. Will they always have inventory models at discount or is this just making room for the refresh and won't last much longer? Some sites estimating the refresh to start at 41k. So about 4k more than inventory model now. Are the QC concerns with Teslas overblown? Is there even any guarantee a refresh will improve that if so?
On top of that, you don't even know when they start production. Could be in China first for all we know.
Big question is whether or not to wait for the refresh or try to snag an inventory base model right now (currently have a few nearby). Would be about 28k after all my tax credits not counting tax and misc fees. Probably around 31k in all. That's more than a used Civic but also getting a brand new car and EV vs ICE.
Not familiar with Tesla. Will they always have inventory models at discount or is this just making room for the refresh and won't last much longer? Some sites estimating the refresh to start at 41k. So about 4k more than inventory model now. Are the QC concerns with Teslas overblown? Is there even any guarantee a refresh will improve that if so?
I don't need a car right now…but I'm getting tired of chauffeuring my daughter everywhere she wants to go.
If she might be moving to an apartment or condo without a garage power outlet, then ICE or Hybrid would be a better choice.
If she might be moving to an apartment or condo without a garage power outlet, then ICE or Hybrid would be a better choice.
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