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frontpage Posted by krispytreat007 • Jun 2, 2023
frontpage Posted by krispytreat007 • Jun 2, 2023

2023 Tesla Model 3 w/ 3 Months Supercharging + $7500 Federal Tax Credit

(For Qualifying Buyers)

from $37830

$40,240

1,793 Comments 922,868 Views
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Tesla is offering its 2023 Tesla Model 3 starting from $37830. This model now qualifies for the $7500 Federal Tax Credit (more information here and here).

Thanks to community member krispytreat007 for sharing this deal.

Note, price and availability will vary by location and may be limited. Additional fees may apply.

Additionally, this includes 3 months free unlimited Supercharging if ordered and delivered between June 14 and June 30, 2023.

Editor's Notes

Written by qwikwit | Staff
  • To qualify for the federal tax credit, one must not exceed the following adjusted gross income limits:
    • $300000 for married couples filing jointly
    • $225000 for heads of households
    • $150000 for all other filers
  • 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.
  • See the forum thread for deal discussion.
  • Get 1%-5% cash back on deals like this with a cash back credit card. Compare the available cash back credit cards here.

Original Post

Written by krispytreat007
Community Notes
About the Poster
Deal Details
Community Notes
About the Poster
Tesla is offering its 2023 Tesla Model 3 starting from $37830. This model now qualifies for the $7500 Federal Tax Credit (more information here and here).

Thanks to community member krispytreat007 for sharing this deal.

Note, price and availability will vary by location and may be limited. Additional fees may apply.

Additionally, this includes 3 months free unlimited Supercharging if ordered and delivered between June 14 and June 30, 2023.

Editor's Notes

Written by qwikwit | Staff
  • To qualify for the federal tax credit, one must not exceed the following adjusted gross income limits:
    • $300000 for married couples filing jointly
    • $225000 for heads of households
    • $150000 for all other filers
  • 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.
  • See the forum thread for deal discussion.
  • Get 1%-5% cash back on deals like this with a cash back credit card. Compare the available cash back credit cards here.

Original Post

Written by krispytreat007

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Top Comments

Eagles89
5963 Posts
786 Reputation
You forgot to mention the $1390 destination fee, $425 for wall connector, $230 for mobile charger, $250 non-refundable order fee.
scn312
168 Posts
65 Reputation
Tesla Model 3 RWD starts at $40,240 but is now eligible for the full $7,500 federal tax credit (income limits apply). Previously, it was only eligible for $3,750. This makes the starting price $32,740 after tax credit.

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
Knightshade
15329 Posts
4338 Reputation
NO IT DOES NOT.

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.com/articl...tax-credit

1,792 Comments

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Jun 5, 2023
4 Posts
Joined Mar 2022
Jun 5, 2023
Mytaxtrial
Jun 5, 2023
4 Posts
Quote from Vigilante375 :
You have that backwards. Per the IRS, an electric sedan over $55k gets $3750. So that means the RWD model 3 gets $7500 unless it's fully optioned out. The model 3 performance gets $7500 as well but only if it's under $55k before adding options.

It's been like that for months now.
you obviously did not go to the IRS Website and look at their grid.
Jun 5, 2023
4 Posts
Joined Mar 2022
Jun 5, 2023
Mytaxtrial
Jun 5, 2023
4 Posts
Quote from Knightshade :
Whew... a LOT of misinformation to correct overnight- consolidating into one place:




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.
According to the IRS website, last updated June 1. The RWD only qualifies for 3750 if purchased after April 18. Until the IRS updates this grid, you can expect they will follow that grid. That means regardless that whatever supply chain changes Tesla has made until the IRS updates this you can only reasonably expect to get the 3750 write off.
Jun 5, 2023
448 Posts
Joined Jul 2009
Jun 5, 2023
LiBingBing
Jun 5, 2023
448 Posts
Don't be fooled by Tesla unless it's official on the government site.
Jun 5, 2023
60 Posts
Joined Mar 2017
Jun 5, 2023
Rockstar2020
Jun 5, 2023
60 Posts
This might be a dumb question.
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 ?)
Jun 5, 2023
9,906 Posts
Joined Jun 2008
Jun 5, 2023
runtohell121
Jun 5, 2023
9,906 Posts
Quote from Rockstar2020 :
This might be a dumb question.
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 ?)
its for next year
Jun 5, 2023
3 Posts
Joined Dec 2018
Jun 5, 2023
IrfanA5696
Jun 5, 2023
3 Posts
Could someone share state specific credit details
1
Jun 5, 2023
15,329 Posts
Joined Sep 2009
Jun 5, 2023
Knightshade
Jun 5, 2023
15,329 Posts
Quote from Mytaxtrial :
According to the IRS website, last updated June 1. The RWD only qualifies for 3750 if purchased after April 18. Until the IRS updates this grid, you can expect they will follow that grid. That means regardless that whatever supply chain changes Tesla has made until the IRS updates this you can only reasonably expect to get the 3750 write off.

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.




Quote from gen2 :
It's line 24.

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.

Quote from dealUnlocked :
Anyone know which Line number to look in 1040 to know if we qualify for full $7500 or not.

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.

Quote from adamsmith7773 :
Do I need to buy this at full price, or does the finance option from tesla or any other bank qualify for $7500 credit?
IRS doesn't care how you pay for it, but it must be a purchase not a lease
Last edited by Knightshade June 5, 2023 at 07:56 AM.

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Jun 5, 2023
22 Posts
Joined Apr 2015
Jun 5, 2023
KungFuJoe03
Jun 5, 2023
22 Posts
Tough decision. I need a car for my daughter and it's been tough looking at 3yr used Civics selling for 25k when I bought a 2017 in 2020 for 17k. Yeah they are super reliable and great overall but it's still a used ICE car. I have solar at home so charging would essentially be completely free if I got an EV.

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.
Jun 5, 2023
2,451 Posts
Joined Apr 2013
Jun 5, 2023
sqa4life
Jun 5, 2023
2,451 Posts
Quote from redcashmere :
No idea, and I could nto find info on it. Looks like a growing market with competition. As with apple and any other billion dollar company I would not personally identify with them and shill for them.

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.
Jun 5, 2023
1,112 Posts
Joined Nov 2004
Jun 5, 2023
aifan
Jun 5, 2023
1,112 Posts
Quote from KungFuJoe03 :
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?
There's not a lot of clear information on what's included in the Model 3 Highland refresh and whether they are a substantial value add. I see something about an improved interior, but no clear info on how substantially improved. Most of the advances could be related to manufacturing which helps Tesla's bottom line but may not be visible to you. I see some rumors here in this article that talk about cameras and headlights too: https://www.msn.com/en-us/money/n...r-AA18V6ea

On top of that, you don't even know when they start production. Could be in China first for all we know.
Last edited by aifan June 5, 2023 at 08:43 AM.
Jun 5, 2023
1,049 Posts
Joined Apr 2006
Jun 5, 2023
coolambo
Jun 5, 2023
1,049 Posts
Do check how much it will cost to insure a Tesla. Don't be surprised to see x3 or x4 vs your current insurance. Pretty much negates any supposed savings. Not a slick deal!
1
5
Jun 5, 2023
683 Posts
Joined Jan 2021
Jun 5, 2023
JamaalJohnson
Jun 5, 2023
683 Posts
Quote from KungFuJoe03 :
Tough decision. I need a car for my daughter and it's been tough looking at 3yr used Civics selling for 25k when I bought a 2017 in 2020 for 17k. Yeah they are super reliable and great overall but it's still a used ICE car. I have solar at home so charging would essentially be completely free if I got an EV.

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.
How long is she going to live with you for? If extended period of time, it's fine.

If she might be moving to an apartment or condo without a garage power outlet, then ICE or Hybrid would be a better choice.
Jun 5, 2023
487 Posts
Joined Jan 2013
Jun 5, 2023
AnsonL6358
Jun 5, 2023
487 Posts
Quote from coolambo :
Do check how much it will cost to insure a Tesla. Don't be surprised to see x3 or x4 vs your current insurance. Pretty much negates any supposed savings. Not a slick deal!
$1,100 per year with Progressive for my Model 3 Long Range in the bay area. My 20 year old Tacoma is still $700 year. Perfect record. Go figure. Base model 3 should be less.
1
Jun 5, 2023
22 Posts
Joined Apr 2015
Jun 5, 2023
KungFuJoe03
Jun 5, 2023
22 Posts
Quote from JamaalJohnson :
How long is she going to live with you for? If extended period of time, it's fine.

If she might be moving to an apartment or condo without a garage power outlet, then ICE or Hybrid would be a better choice.
She's off to college in Sept. Will be dorming but coming home every weekend. 18 miles away. Car will stay here when she's at school unless she needs it for something though so that's 72 miles (back and forth twice) a week for the first year. After that we are hoping she can live at home and commute. So that's at least 4 years and most likely more until she can make enough money to move out on her own.

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Jun 5, 2023
373 Posts
Joined Nov 2008
Jun 5, 2023
mrrame
Jun 5, 2023
373 Posts
any speculation on when the highlander model will be out? couple of weeks or months?

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