DaveF1006
Expert Alumni

Self employed

If your only income is self-employment income, you won't receive a credit for your Tesla. This is because your profit does not exceed your standard deduction for the year thus there is no tax liability.  A Tesla credit is a non-refundable credit meaning that if there is tax liability then that credit will help reduce the tax liability to zero. If it is already zero, then the credit cnnot be used.

 

To verify, go to the forms mode in your program and look at the 1040. look at line 16 on the 1040.  if there is a zero there or line 24, then the credit cannot be used

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