Tax Discount ?

[8BitFitNES]

Unless you claim tax exempt which I would assume you would know or you make to much you will get up to $7500 off of your taxes this year when you file. It will transition to point of sale next year but I’m guessing your after the extra $1000 Tesla is offering Cybertruck reservation holders which has to be this year. This link may help you. It’s a FAQ on this topic by the IRS and is decently written.

https://www.irs.gov/newsroom/topic-...-limitations-for-the-new-clean-vehicle-credit

 

[EVSport7]

Unless you absolutely need it right now, I would wait until January. $7500 off at point of sale. Just make sure your income is under the limit otherwise they will tag you on your next year's taxes

 

[Gurule92]

Thanks for the quick reply!
Looks like I wouldn't be qualifying for any discount then as I usually dont owe money.

Everyone owes something. The reason you get a refund is because you over pay when considering credits vs liability.

refunds basically happen because your monthly tax deductions from your pay are pulling out more than you actually need to pay.

But just because you get a refund doesnt mean you got all your money back. you could get a 4k refund and still have had a significant tax liability taken by the feds.

 

[Regenshire]

Unless you absolutely need it right now, I would wait until January. $7500 off at point of sale. Just make sure your income is under the limit otherwise they will tag you on your next year's taxes

Have you looked at inventory discounts on Model Y right now? In my area the discounts are pretty high. And with a Cybertruck reservation you get an additional $1k off if the order is done before the end of the year. I am not sure it makes sense to wait, especially since you can get that money back in your account within a few months since we are real close to tax season.

Prices tend to be best towards end of quarter, and Tesla is really trying to move cars right now.

 

[EVSport7]

Have you looked at inventory discounts on Model Y right now? In my area the discounts are pretty high. And with a Cybertruck reservation you get an additional $1k off if the order is done before the end of the year. I am not sure it makes sense to wait, especially since you can get that money back in your account within a few months since we are real close to tax season.

Prices tend to be best towards end of quarter, and Tesla is really trying to move cars right now.

Good to know with the inventory thing. My in-laws had to rush the process and get an inventory model. Had to pay for all the extras they didn't need and then they missed out on a big chunk of their rebate since they're retired

 

[Eliot Minaise]

Incorrect.

If you have a job, there is withholding taken from every paycheck. If you didn’t “owe anything” then you would get all of that back, right? “Breaking even” means your withholding matched your tax liability, and you definitely paid taxes.

Therefore, with a $7500 credit, you would get an additional $7500 back as long as your total tax was at least that much. If you didn’t make enough salary to owe at least that much in taxes, you probably can’t afford a Cybertruck anyway.

They give me 2k back every year.

 

[Crissa]

My understanding is it is a tax “credit”. If you usually break even or get my back then the credit is useless. You have to owe $7500 or more to get the full benefit.

If you made $50k, you generally 'owe' $7500 in Federal taxes. It doesn't matter if you paid them along the way - filing taxes is how we settle out the year between the actual amount owed and the amount paid. Which is why people get refunds.

-Crissa

 

[Rutrow]

Forget about "Tax refund" or "Tax Due" on your April 15th tax return. Instead, pull out your Form 1040 from last year (assuming your income and withholdings are similar from year to year) and look at line 16.

If line 16 of your tax form is greater than $7500, you'll likely* get the full credit, and your refund will be $7500 higher than it was last year!!! ?

The other line to pay attention to is Line 10. If that is too high ($150k - $300k based on filing status): 1. you're lucky to have such a high paying job and your life should be very comfortable, but 2. it may be so high that you can't take the credit.

*things could vary widely from year to year for some people, but generally, most people's tax situation is fairly stable. speak to your accountant.