So I bought a new tesla and was qualified for 7500 credit but only got back $6,769.00. Anyone know why?

[rawadhadla]

Tesla model y 2023

[DoninGA]

Once the credit reduces your tax liability to zero the remaining credit is lost.

[rawadhadla]

I'm not what sure you mean, could you explain what that is? I made about 90k paid about 9.5k federal with 1 child to claim.

[DoninGA]

Look at your federal tax return, Form 1040.

The tax on your taxable income is shown on Line 18 (this is your tax liability)

The EV Tax Credit is entered on Schedule 3 Line 6f.  The total from Schedule 3 Line 8 flows to the Form 1040 Line 20.

The total of Lines 19 and 20 are reported on Line 21.  Line 21 is subtracted from Line 18 on Line 22.  If the total credits reported on Line 21 are greater the tax liability on Line 18 then Line 22 will be zero and any remaining credit is lost.

For example - if Line 18 is $6,500 and Line 21 is $7,000 then Line 22 will be $0 and remaining $500 is lost.

[DoninGA]

Additionally, if you are completing a 2023 tax return -

The IRS Form 8936 Clean Vehicle Credit for tax year 2023 has not been finalized in TurboTax.

The form is scheduled to be available on 02/21/2024.

Go to this TurboTax website for forms availability - https://form-status.app.intuit.com/tax-forms-availability/formsavailability?albRedirect=true&product...