Currently Turbo Tax says we owe $4,790 in Federal Taxes. I am trying to get the deduction for the new Tesla we purchased in 2023. It says we don't qualify. But it doesn't say why.
It is new, driven only in the US, married filing jointly under $300k income.
I did read this:
"For new and previously owned clean vehicles your credit cant be bigger than what you owe in taxes, the taxes you owe are reduced to zero, and the rest of your credit is lost.
Example: If you owe $375 in taxes, and you receive a credit of $500, the tax you owe is reduced to zero, and the remaining $125 is lost. You won't receive a refund for the remaining $125."
Shouldn't it then reduce the tax we owe to zero?
