Congratulations on the purchase of your new Tesla! Please keep in mind that we can only provide advice on current law. The laws may change before you actually file your 2023 tax return. According to the Inflation Reduction Act of 2022, you are eligible for the credit based on your income of $190k and a Married Filing Jointly filing status. Your tax liability is the actual amount of tax that you owe based on your taxable income. You can find it on a copy of your tax return from last year. This credit will reduce the full tax liability before taking into account your withholding from your paychecks. If you generally receive a refund, then it is very likely that you would receive a refund with the clean vehicle credit. For example, if your tax liability is $20k, it would be reduced by the $7,500, then your withholdings would be applied to the remainder of the liability to calculate your refund amount. This credit is part of your tax return so the refund would be included in your tax refund from your tax return. There would be no need to reduce your withholdings at this point.
Here are the details relating to qualified vehicles:
https://www.irs.gov/credits-deductions/credits-for-new-clean-vehicles-purchased-in-2023-or-after
Here is another source of information from TurboTax as well:
https://turbotax.intuit.com/tax-tips/going-green/understanding-the-new-clean-vehicle-credit/L6Y0JrGN...
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