Hi all,
I am considering buying a Tesla model 3 and I hope that my understanding of the EV tax credit is correct:
The EV tax credit is applied on the tax owed (line number 24 on the 1040 form in 2022). So let's assume that in 2023 that number is $10000. So this brings the total tax down to $2500. And I've already paid $10000 through my paychecks (withholding). So in the end I will get a $7500 refund from IRS (subtracting $2500 from $10000).
So as long as my tax is more than $7500 and I've already paid same amount of tax for the year, I should get the whole $7500 back.
Thank you!
