2023 Tesla EV tax credit for $0 income?

Forum|Forum|3 years ago
January 13, 2023
7 replies
64 views

Hi,

I file taxes as single person. I voluntarily quit my job last year so my income for 2022 in $0. However, I just started a new job on 01/03/2023 with an income greater than $150,000. I plan to buy a Tesla with a delivery date of February 2023 but I was wondering how I can take benefit of the $7500 tax credit. According to the IRS website, I can use the AGI for the year I take delivery or the year prior whichever is lower. While filing tax return this year for 2022, my income will be $0 so I'm assuming my taxes will also be close to $0. However, when I file taxes in 2024 for my income in 2023 can I still use my 2022 AGI to get the $7500 tax credits?

Not A Product Question

DoninGA

Level 15

Tesla electric vehicles are not eligible for the EV credit due to the Manufacturer sales cap met

Go to this website for eligible vehicles - https://www.fueleconomy.gov/feg/taxevb.shtml

devang304Author

Level 2

So I see that Teslas are eligible for the new ev tax credit starting 2023. So if I buy in 2023, next year when I file my tax returns, I can use my 2022 AGI to be eligible right?

DoninGA

Level 15

@devang304 wrote:

So I see that Teslas are eligible for the new ev tax credit starting 2023. So if I buy in 2023, next year when I file my tax returns, I can use my 2022 AGI to be eligible right?

No, your 2023 AGI is used on your 2023 tax return to determine your eligibility for the credit on a vehicle purchased in 2023.

Vanessa A

Level 15

The EV credit is non refundable which means if you do not have a tax liability, you cannot claim the credit. If you have $0 income, you would not have a tax liability.

Also, the credit for the Tesla has been phased out so it is no longer eligible for the credit.

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