This is the best video in this regard that I have even watched. Other UA-camrs has confused me when they explained. Your video is clear and deserves a thumps up!!!! Thank you.
When we asked our tax guy about buying an EV he replied, “Do it.” Since we pay him by the minute, we appreciated his brevity, but wondered how it all worked. You gave us very good information without (me) experiencing any evidence of my eyes glazing-over! Thank you-
Thank you for the detailed explanation. I was about to adjust my tax withholding but since my tax liability was close to your first example then I believe I am all set. Just ordered model Y and can't wait to reap its benefits! 💰💥
I lolled at the 420 capital gains and 69 other income. Nice. On a more serious note. This is the ONLY video that clearly explained what my tax liability is and how EV credits can be applied to me. Thank you and subbed.
I don't usually leave a comment on UA-cam but I got all my questions answered from your video!! thanks a lot for explaining it with such great detail!!
Thank you. You earned a thumbs up and a subscriber. After speaking with my accountant , what he told me matches 100% with your explanation. Some of the comments (on Reddit) regarding this topic are pretty crazy. Never trust, always verify.
yep! There is so much misinformation out there and because people dont actually know, they perpetuate absolute garbage as fact. I can't tell anyone exactly what their liability is going to be in 2024, but I can show you a good reference to use to get a good idea on what your liability may be. IT IS NOT YOUR REFUND!!!!
Thank you! I always thought I had to owe $7500 to take advantage of the credit. Usually get a decent refund, so adjusted my W4 to have les tax taken out 😅. I checked my 1040 line 24 and easily have enough tax liability for several EVs 😂. Which is good because my spouse wants an EV now too 😮
Thank you. I've been waiting all year for somebody to explain this in a way that I could understand it. Kept hearing all different kinds of things about how this works from other people.
This is awesome. I’ve scoured the depths of the internet looking for this exact video. Well done in some of your very specific numbers too. Don’t think that went unnoticed 😂 Thanks again
Best EV tax credit video out there...SAVED! The struggle is real to explain it well and correctly and you nailed it! Posting this to my Tesla groups I watch and moderate! Keep up the good work.....
Very eye opening. In the end, this EV tax credit is for people who are already doing well financially because you gotta earn enough income to have a tax liability equivalent to $7,500 in a fiscal year.
Thank you so much for clarifying next years $7500 point of sale discount. I thought I would wait till next year to have it deducted right off the price of the car, even though I don’t have that much in tax liability. It works out the same as this years rules. Whatever you owe is offset by UP TO the 7500, whether it’s at time of purchase or when taxes are filed. Thanks for being so informative.
Good job BTG! I do have an idea that may help many people with taxable IRA's. Withdrawing $$ from it is a taxable event. If you are old enough to take $ out, but you don't want to mess with your retirement, transfer the amount needed to generate $7500 taxliability to a ROTH! It will grow without any future Federal tax liability! Here in Florida, there are lots of folks who can do this. You can calculate exactly the amount you need to transfer. Sound interesting?
Thank you so much for this video! It helped explain a lot of confusion I had on how it works this year and how it would work next year. I appreciate this!🙌🏼
Most people don’t have any idea how much they pay for taxes. We should be required to write a check every month to remind everyone. more people will demand more accountability from their government on how their tax dollars are spent.
Thanks so much for making this video! Glad to know that if I want to buy an EV I get all that tax credit back. About damn time, gettin tired of paying Uncle Sam! Make more videos🎉
5:04 you answered my question!! My tax liability is 27k after all deduction. We file jointly and don’t make over 300k … I took delivery MYP 2 wks ago and now planning to order M3… total of 15k tax refund from my liability. Thank you!😃
Thank you so much for the clarification. Paying the balance yearly is so agonizing that I totally forgot about the actual entire tax amount. Also thanks for the 2024 heads up particularly on point of sale credit to an eligible entity, worth exploring should a second EV opportunity happen.
Thank you so much for making this video and complex tax topic easy. I know you make videos about everything Tesla as an automobile & tech but touching on this important topic was so kind act from you :). Thanks again.
This was exactly what I was looking for. I'm in exact same situation, W2 employee with withholding. My total tax is much greater than $7500 and every year I usually get small refund. I had thought because ev tax credit is "non-refundable" tax credit I had thought it means it won't increase my refund. So it appears I was wrong to think that. Feel like I see so many different interpretation on this.
Totally agree. Anyone with lesser income and likely all retired people on SSI wont qualify. Not sure why the law is helping the wealthy and not everyone get into an EV. Frustrating!
I wanted to bring the situation with the annual income. Our last year -2022 was less than 300, but this 2023 most probably will be over. On the IRS website, I found for the ev tax you could claim whatever year was less out of the two last years. So looks like if 2023 is over $300k you are still good to go.
Thank you for explaining this in detail with example. Very helpful! Basically, look at line 24 to see if you qualify. In this case, I don't have any tax liability so I won't be qualify😂
@tonydizon7286 according to his explanation, you will qualify for the whole 7,500 because your liability is greater than 7,500. That 7,500 will be added to your tax refund.
Thanks! This was really helpful. I wasn’t sure if there was a limit of the number of EV cars you can buy in one year that would qualify for a tax credit you cleared it for me that it just depends on my total tax liability amount.
Federal tax credit for used is up to $4k but the income limits are down to 75k single, 150k joint filers. Car has to be 2 years old or older, under $25k price.
My mom is buying me a Tesla, she makes way over the agi, I qualify myself as a w-2 employee. How could we manage to acquire that $7500 credit? Is there any situation that we can qualify if I was to somehow buy it?
Thanks this just confirmed my understanding of the credit. I am hopeful you have a follow up to discuss the income limits and how they work. I am particularly interested in a joint purchase in a case where 1 person may be over the max income and 1 may not.
Thank you for very useful information always. I have one question. If i buy two EVs in the same year and i meet every qualification, then do I get $15,000 credit? Assuming i have more than $15k tax liabilities. I just want to know whether EV credits are limited to one per year or not. Thanks.
Excellent video, clearly explained. Thank you so much. I have a question, for married filing jointly, should the vehicle be purchased on the name of both me and my spouse?
Thanks for the info BTG, easy to understand once you watch the video, the only question i have, and I hope you know this, child tax deduction is refundable up to $1500, on your 2nd scenario, could you use the vehicle tax credit and take the $3000 refundable, or is it automatic that child credit goes first?
I don’t know how I ran across your video but I am glad I did. I want to buy a Tesla and trying to figure out how I could get the entire 7500. I am in California so I am trying to figure the credits out here.
Hi there, Great job! I believe what you presented make a lot of sense, however I am finding the information on NerdWallet confusing. NerdWallet states "The credit is nonrefundable; it can lower your tax bill to zero, but it won’t result in a refund." Their calculator is also not showing the return of extra money paid considering the EV tax credit. I have tried that with your numbers. Can you please comment on these.
That is correct, it is non refundable. But what that means is that if you didn't pay or owe that much in taxes, you won't get the excess back as a refund. If you paid over that 7,500, you'd get the full amount back.
Thank you for the information. I have a few questions. I plan on financing a model 3 soon here and deciding on the options. I probably wont be able to do it alone cause even though my income is decent, credit score is average. My mom's score is very good with decent income. But since she has dependants and is self imployed, her tax liabilty is not the highest. She would either co-signing (also co registered owner) or just do it under her name (whatever gives the best interest rate lol). That being said, would it be possible for me to claim the tax rebate of $7.5k ( whether she or I co-sign/co-own or it is in her name completely).
Wouldn't it be best to wait till 2024 to purchase so the 7500 comes off the purchase price and therefor lowering your monthly payment and overall interest paid if taking a loan on the car?
does the $7,500 off the price of the vehicle starting in 2024 work for ordering directly from Tesla as well? I know you said dealers, however, does this work for Tesla direct?
Sorry, I might missed some info. How many years do we have to file the tax credit? I don't remember if I ever applied my Tesla in my filing the year I bought my vehicle. Thanks
Wow, that's the first validation I've seen on buying multiple and getting multiple $7,500 rebates. We have plenty of tax liability but still fall just under the $300k married cap.
Love the video. How are state sales taxes figured into this? Is the credit before or after? I got a figure of $37311 for M3 rear drive using St Fl .07. Maybe a video taking the car cost all the way to the street could be next. I understand all states have different tax rules. You could show us what state has the best deal and what state has the worst or a 50 state rating, but that is a lot to ask. Keep up the good work!
In 2023 the credit comes at time of filing taxes, so you'd pay taxes on the full price of the car, without considering the tax credit. In 2024, if you elect to take the credit at time of purchase, it comes off the price of the car, which would lower your sales tax for that purchase
Is this Federal 4K income tax credit benefit going to be available if I can't purchase the car until 2024? or do I have to buy the car before the 2023 year ends?
Thank you, if you know also off the top of your head, what could be potential drawback's of level 3 charging with the new 2019 Nissan Leaf's SL trim with over 200 mile range, I'de appreciate it, I like that this price is approaching only 15K with low odometer miles, but worry it's not a bargain that much because they're level 3 charging in California and Nevada could be in jeopardy ?
Thanks for the amazing video! 👍 Just to be clear, how "Point of Sale credit (discount?) starting 2024" is going work is still not very clear? Also, is it possible that certain automakers would increase MSRP considering Point of Sale credit?
yea, my assumption is the fords, chevy's of the world will increase the price of the cars, knowing many will take the credit at the time of purchase for during the year. I hope tesla doesn't play that game! I can see other dealers like ford and chevy advertising a price and then if you plan to take the credit at the time of purchase, the price will go up! Like the old days when they did cash for clunkers, if you were using cash for clunkers you didn't get the good deal on the car they were selling.
Thank you for the detailed explanation. One question is on the 2024 sale credit to an eligible EV. is this credit calculated based on 2023 adjusted gross. What happens if by end of 2024 the adjusted gross income crosses more than the limits set by IRS. Will the credit amount need to be paid back.
What does the law say about “Self-employment tax” that shows up on line 23 of a 1040? Do you know if self-employment tax can help to offset the EV tax credit?
**I AM NOT A FINANCIAL ADVISOR AND THIS VIDEO DOES NOT REPRESENT FINANCIAL ADVICE**
Good information. Also please add the income limit. If your adjusted gross income (AGI) should be $150k for filing as single and $300k filing jointly
Hi! If I am paying quarterly estimate tax, can I reduce my payments to include ev tax credit? Or should I wait until April to file return?
This is the best video in this regard that I have even watched. Other UA-camrs has confused me when they explained. Your video is clear and deserves a thumps up!!!! Thank you.
When we asked our tax guy about buying an EV he replied, “Do it.” Since we pay him by the minute, we appreciated his brevity, but wondered how it all worked. You gave us very good information without (me) experiencing any evidence of my eyes glazing-over! Thank you-
Very pleased to hear. Thank you.
Thank you for the detailed explanation. I was about to adjust my tax withholding but since my tax liability was close to your first example then I believe I am all set. Just ordered model Y and can't wait to reap its benefits! 💰💥
Congrats!
You will not get a refund. If you don’t owe any taxes you get nothing
Thank you for doing this. SO MANY don’t understand what liability is
Cheers
Thank you so much ! I was about to stop withholding thinking I needed to owe at the end. Really helped me.
Welcome!
I lolled at the 420 capital gains and 69 other income. Nice.
On a more serious note. This is the ONLY video that clearly explained what my tax liability is and how EV credits can be applied to me. Thank you and subbed.
Thank you! Best explanation ever given to help me and others understand this Federal Tax Credit for EV's.
I don't usually leave a comment on UA-cam but I got all my questions answered from your video!! thanks a lot for explaining it with such great detail!!
So glad to hear it was helpful!
Thank you. You earned a thumbs up and a subscriber. After speaking with my accountant , what he told me matches 100% with your explanation. Some of the comments (on Reddit) regarding this topic are pretty crazy. Never trust, always verify.
yep! There is so much misinformation out there and because people dont actually know, they perpetuate absolute garbage as fact. I can't tell anyone exactly what their liability is going to be in 2024, but I can show you a good reference to use to get a good idea on what your liability may be. IT IS NOT YOUR REFUND!!!!
reddit is becoming a terrible source for information. another blogging source. good job doing real research
Thank you! I always thought I had to owe $7500 to take advantage of the credit. Usually get a decent refund, so adjusted my W4 to have les tax taken out 😅. I checked my 1040 line 24 and easily have enough tax liability for several EVs 😂. Which is good because my spouse wants an EV now too 😮
So glad I could help!
Thanks to your video I was able to get my tax credit this year!
Glad I could help!
I did a lot of research on this and you are one of the best easy to understand explanation, compared to the CPA folks in UA-cam.
Thanks!
Best explanation for tax liability. ❤
Glad it was helpful!
Thank you. I've been waiting all year for somebody to explain this in a way that I could understand it. Kept hearing all different kinds of things about how this works from other people.
Glad it helped!
This is awesome. I’ve scoured the depths of the internet looking for this exact video. Well done in some of your very specific numbers too. Don’t think that went unnoticed 😂 Thanks again
Always happy to help, Easter eggs and all!
Good video sir. For everyone else, if you're like me and experienced at taxes and adulting - and you're impatient - @11:20 is what you want to see
Cheers!
Best EV tax credit video out there...SAVED! The struggle is real to explain it well and correctly and you nailed it!
Posting this to my Tesla groups I watch and moderate! Keep up the good work.....
really appreciate you and thanks a bunch for the Super Thanks!!
The Most educational video on the subject.
Glad I watched. I didn’t realize you can use the credit for a new car more than once every three years. Thank you!
Happy to help!
Very eye opening. In the end, this EV tax credit is for people who are already doing well financially because you gotta earn enough income to have a tax liability equivalent to $7,500 in a fiscal year.
Thank you for the very detailed and informational breakdown and scenarios of how the EV tax credit works.
You bet!
Thank you so much for clarifying next years $7500 point of sale discount. I thought I would wait till next year to have it deducted right off the price of the car, even though I don’t have that much in tax liability. It works out the same as this years rules. Whatever you owe is offset by UP TO the 7500, whether it’s at time of purchase or when taxes are filed. Thanks for being so informative.
Cheers
Huh, what if I don’t have enough liability to cover the 7500?
Thank you very much for putting this video out. It saves me a big headache 😅
You're welcome!
Good job BTG! I do have an idea that may help many people with taxable IRA's. Withdrawing $$ from it is a taxable event. If you are old enough to take $ out, but you don't want to mess with your retirement, transfer the amount needed to generate $7500 taxliability to a ROTH! It will grow without any future Federal tax liability! Here in Florida, there are lots of folks who can do this. You can calculate exactly the amount you need to transfer. Sound interesting?
Smart
Finally a very clear explanation with examples. I was scouring this site to find one confirming this was how it worked.
Cheers
Thank you so much for this video! It helped explain a lot of confusion I had on how it works this year and how it would work next year. I appreciate this!🙌🏼
You are so welcome!
Thank you for this resource! Great public service you provide.
Any time!
Most people don’t have any idea how much they pay for taxes. We should be required to write a check every month to remind everyone. more people will demand more accountability from their government on how their tax dollars are spent.
for sure.
Thank you, bearded Tesla guy, for this valuable info. Your channel is the best and is my favorite!
Wow, thanks!
This is such important information!!!! Many people do not understand how this works.
Cheers
Thanks so much for making this video! Glad to know that if I want to buy an EV I get all that tax credit back. About damn time, gettin tired of paying Uncle Sam! Make more videos🎉
Cheers
Great video I did my math and I would have gotten a tax refund of 1385 last year instead of having to pay 6275!
There you go!
5:04 you answered my question!! My tax liability is 27k after all deduction. We file jointly and don’t make over 300k … I took delivery MYP 2 wks ago and now planning to order M3… total of 15k tax refund from my liability. Thank you!😃
Most welcome, congrats!
Congrats! We did the same. I feel like I got the M3 (inventory) for a friggen steal compared to insane prices last year!
Thank you so much for the clarification. Paying the balance yearly is so agonizing that I totally forgot about the actual entire tax amount. Also thanks for the 2024 heads up particularly on point of sale credit to an eligible entity, worth exploring should a second EV opportunity happen.
Cheers
Thank You so much for explaining this in simple to follow examples. This helps clear up my confusion on how this credit works.
Most welcome
I kind of figured this was how it went but was not sure. Thanks
Thank you so much for making this video and complex tax topic easy. I know you make videos about everything Tesla as an automobile & tech but touching on this important topic was so kind act from you :). Thanks again.
Glad it was helpful!
Explained very well. Thank you.
Glad it was helpful!
EXCELLENT VIDEO 👏👏👏
The clarification around multiple tax credits helped affirm my own understanding.
Glad it was helpful!
This was an amazing breakdown, keep up the awesome content!
Appreciate it!
This was exactly what I was looking for. I'm in exact same situation, W2 employee with withholding. My total tax is much greater than $7500 and every year I usually get small refund. I had thought because ev tax credit is "non-refundable" tax credit I had thought it means it won't increase my refund. So it appears I was wrong to think that. Feel like I see so many different interpretation on this.
Exactly the video I was looking for. Thank you.
Glad it was helpful!
Thanks for explaining! This is so confusing topic.
Glad it was helpful!
Good info! So it’s a tax break for the better off/rich and not for me 😢
It may feel that way, and it should have been a refundable credit so everyone under the income limits qualified
Totally agree. Anyone with lesser income and likely all retired people on SSI wont qualify. Not sure why the law is helping the wealthy and not everyone get into an EV. Frustrating!
I wanted to bring the situation with the annual income. Our last year -2022 was less than 300, but this 2023 most probably will be over. On the IRS website, I found for the ev tax you could claim whatever year was less out of the two last years. So looks like if 2023 is over $300k you are still good to go.
Yes, but speak with tax professional to be 100% sure.
Awesome Video!!! I wasn't reading it this way but this makes sense!!! Great Job!!!
Glad it was helpful!
Thank you for explaining this in detail with example. Very helpful! Basically, look at line 24 to see if you qualify. In this case, I don't have any tax liability so I won't be qualify😂
Glad it was helpful!
question: if my line 24 on my 2022 Form 1040 shows $8500. Do I still qualify for the $7500 tax credit if I buy a new EV this year? Thank you!
@tonydizon7286 according to his explanation, you will qualify for the whole 7,500 because your liability is greater than 7,500. That 7,500 will be added to your tax refund.
Perfect explanation. Thank you!
You're welcome!
Thanks! This was really helpful. I wasn’t sure if there was a limit of the number of EV cars you can buy in one year that would qualify for a tax credit you cleared it for me that it just depends on my total tax liability amount.
Glad it helped!
Thank You
Best video out there by far. Thank you!
Glad it was helpful!
Highly recommend John and Jane BUYA HOUSE and itemize next year...and still buy Teslas for each!
Lol
Wow, such a great explanation! Thank you!
Hello my handsome friend. Awesome videos. Keep up the great work!
I have a question, are there tax breaks on buying a used EV for state and federal??
Federal tax credit for used is up to $4k but the income limits are down to 75k single, 150k joint filers. Car has to be 2 years old or older, under $25k price.
Wow thank you for this information super helpful. Do you know by any chance if the Solar Federal Tax Credit works the same way?
I believe so, but I have not dug into that at this level of detail yet.
What a great video. Helps a lot. In 2024 do you think it will be the same benefits regarding the 7500 credit?
the tax credit will not reduce for 10 years unless it is rewritten and passed as an amendment to this law.
My mom is buying me a Tesla, she makes way over the agi, I qualify myself as a w-2 employee. How could we manage to acquire that $7500 credit? Is there any situation that we can qualify if I was to somehow buy it?
Thanks this just confirmed my understanding of the credit. I am hopeful you have a follow up to discuss the income limits and how they work. I am particularly interested in a joint purchase in a case where 1 person may be over the max income and 1 may not.
Check out my previous video on the topic. I cover income in almost all of them
Thank you for very useful information always. I have one question. If i buy two EVs in the same year and i meet every qualification, then do I get $15,000 credit? Assuming i have more than $15k tax liabilities. I just want to know whether EV credits are limited to one per year or not. Thanks.
these are some quality tax return numbers
😎
Thanks!
Welcome
Excellent video, clearly explained. Thank you so much. I have a question, for married filing jointly, should the vehicle be purchased on the name of both me and my spouse?
In the way I understand the final bill, it wouldn't matter.
Thanks for the info BTG, easy to understand once you watch the video, the only question i have, and I hope you know this, child tax deduction is refundable up to $1500, on your 2nd scenario, could you use the vehicle tax credit and take the $3000 refundable, or is it automatic that child credit goes first?
Child tax credit goes first.
Thank you for this clear explanation. It was really understandable with the examples that you gave us.
Glad it was helpful!
Thank you for the great explanation! Very good and informative video!
Glad it was helpful!
Hi, great explanation 👍🏻
Do you know if my GF and me get a co loan to buy an EV, can either of us file for the credit? We file separately as single.
Thank you 🙏
I don’t know how I ran across your video but I am glad I did. I want to buy a Tesla and trying to figure out how I could get the entire 7500. I am in California so I am trying to figure the credits out here.
lots of other credits available to you out there!
Hi there, Great job! I believe what you presented make a lot of sense, however I am finding the information on NerdWallet confusing. NerdWallet states "The credit is nonrefundable; it can lower your tax bill to zero, but it won’t result in a refund." Their calculator is also not showing the return of extra money paid considering the EV tax credit. I have tried that with your numbers. Can you please comment on these.
That is correct, it is non refundable. But what that means is that if you didn't pay or owe that much in taxes, you won't get the excess back as a refund. If you paid over that 7,500, you'd get the full amount back.
Thank you for the information. I have a few questions. I plan on financing a model 3 soon here and deciding on the options. I probably wont be able to do it alone cause even though my income is decent, credit score is average. My mom's score is very good with decent income. But since she has dependants and is self imployed, her tax liabilty is not the highest. She would either co-signing (also co registered owner) or just do it under her name (whatever gives the best interest rate lol). That being said, would it be possible for me to claim the tax rebate of $7.5k ( whether she or I co-sign/co-own or it is in her name completely).
Don’t know. You’d have to ask a tax professional on that one
Very helpful video. Thank you so much 👍
Glad it was helpful!
Very helpful, I am 100% clear now :)
Nicely detail and straightforward
Cheers
Very informative to straighten this out for people. Nice video
Cheers
I wonder given Colorado offers an additional tax credit up to I think $4500-$5000 could be applied in 2024 to the entity as well
Wouldn't it be best to wait till 2024 to purchase so the 7500 comes off the purchase price and therefor lowering your monthly payment and overall interest paid if taking a loan on the car?
does the $7,500 off the price of the vehicle starting in 2024 work for ordering directly from Tesla as well? I know you said dealers, however, does this work for Tesla direct?
Yes
So if I bought a ford lightning this month and didn’t use the credit in the deal, I won’t be able to file for the credit?
You are a God sent I subbed thank you man I love you
Glad I could help
Is $25000 before taxes or after taxes and fees? Thank you
It would be just so much easier to just give a rebate on the spot when buying one.
Yea, I completely agree. But why would the government do anything thats "easy"
What a fantastic video. Thank you!
Glad it was helpful!
This was amazing, finally someone explains it!
Welcome!
Sorry, I might missed some info. How many years do we have to file the tax credit? I don't remember if I ever applied my Tesla in my filing the year I bought my vehicle. Thanks
Very good information. Have you looked into tax credits for small businesses and how that works? Again, thank you very good information.
Have not but I appreciate it
Great video answered a lot of questions.
Can you do a video on the 6,000 pound business car tax break that the model x qualifies for please
Wow, that's the first validation I've seen on buying multiple and getting multiple $7,500 rebates. We have plenty of tax liability but still fall just under the $300k married cap.
Yep, no limit on new cars
What if I don’t have enough tax liability? Does point of sale credit transfer nullify this?
This was the perfect video! Thank you!!!❤
Most welcome
Love the video. How are state sales taxes figured into this? Is the credit before or after? I got a figure of $37311 for M3 rear drive using St Fl .07. Maybe a video taking the car cost all the way to the street could be next. I understand all states have different tax rules. You could show us what state has the best deal and what state has the worst or a 50 state rating, but that is a lot to ask. Keep up the good work!
In 2023 the credit comes at time of filing taxes, so you'd pay taxes on the full price of the car, without considering the tax credit. In 2024, if you elect to take the credit at time of purchase, it comes off the price of the car, which would lower your sales tax for that purchase
@@BeardedTeslaGuy As would the trade in value if you had one.
Is this Federal 4K income tax credit benefit going to be available if I can't purchase the car until 2024? or do I have to buy the car before the 2023 year ends?
Effective until 2032
Thank you, if you know also off the top of your head, what could be potential drawback's of level 3 charging with the new 2019 Nissan Leaf's SL trim with over 200 mile range, I'de appreciate it, I like that this price is approaching only 15K with low odometer miles, but worry it's not a bargain that much because they're level 3 charging in California and Nevada could be in jeopardy ?
Any Tax credit for Vehicle delivered on August 22nd 2022?
No
Thanks for the amazing video! 👍
Just to be clear, how "Point of Sale credit (discount?) starting 2024" is going work is still not very clear?
Also, is it possible that certain automakers would increase MSRP considering Point of Sale credit?
Guidance has not been provided on how consumers will "select" the amount of the credit to apply to the sale.
yea, my assumption is the fords, chevy's of the world will increase the price of the cars, knowing many will take the credit at the time of purchase for during the year. I hope tesla doesn't play that game! I can see other dealers like ford and chevy advertising a price and then if you plan to take the credit at the time of purchase, the price will go up! Like the old days when they did cash for clunkers, if you were using cash for clunkers you didn't get the good deal on the car they were selling.
If you assign the $7500 to the dealer you are it does not lower the taxable value of the new vehicle in California so what is the advantage?
I made around 80k this year before taxes. Would I qualify for the full 7,500 tax credit filing single?
Thank you for the detailed explanation. One question is on the 2024 sale credit to an eligible EV. is this credit calculated based on 2023 adjusted gross. What happens if by end of 2024 the adjusted gross income crosses more than the limits set by IRS. Will the credit amount need to be paid back.
It says the current or previous year AGI can be used
So, my line 24 is $1,700 then I would only get that amount next year not the 7,500. Correct?
Essentially yes, but confirm with your tax accountant
Well damn, I don't owe enough tax to get the full credit
it happens.
I don't make enough to be taxed enough.
What does the law say about “Self-employment tax” that shows up on line 23 of a 1040? Do you know if self-employment tax can help to offset the EV tax credit?