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Electric Car Tax Credit for 2023

Can I claim a deduction for my 2021 Tesla purchased in the same year? In 2018, the deduction is allowed, even if the standard deduction is taken.  However, I can't find an answer for 2023. Additionally, this 2023 TurboTax program sends me to Form A from the deductions page, which implies a requirement to Itemize...

 

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4 Replies
MayaD
Expert Alumni

Electric Car Tax Credit for 2023

Are you trying to claim the EV credit for car purchased in 2021 on your 2021 tax return? 

If you already filed your 2021 return, you'll need to amend it to claim the credit. The credit should be claimed in the year the vehicle was purchased and put into service.

 

Please check all requirement listed in the link below to see if you car qualifies for the credit:

U.S Department of Energy

 

Per IRS: If you bought a new, qualified plug-in electric vehicle (EV) in 2022 or before, you may be eligible for a clean vehicle tax credit up to $7,500 under Internal Revenue Code Section 30D.

The credit equals:

  • $2,917 for a vehicle with a battery capacity of at least 5 kilowatt hours (kWh)
  • Plus $417 for each kWh of capacity over 5 kWh

The maximum credit is $7,500. It is nonrefundable, so you can't get back more on the credit than you owe in taxes. You can't apply any excess credit to future tax years.

 

For more information, check: Credits for new electric vehicles purchased in 2022 or before

 

[Edited 04/08/2024, 11:40AM,PST]

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Electric Car Tax Credit for 2023

Thanks for the response.

I am filing my *2023* Tax Return.

 

I have a 2021 Tesla purchased in 2021. I have NOT claimed any deductions for it. I'm finding different results regarding Tesla specifically. Some sources state that Tesla deduction was phased out in 2019... Can you confirm one way or another?

Also, I installed a Charging Station in 2021 in my home. I'm finding so much contradictory information, I don't know what to do. 

If I can deduct for this car, should I file an Amended Tax Return for 1921?

Thanks for any thoughts!

DaveF1006
Expert Alumni

Electric Car Tax Credit for 2023

You will need to amend your 2021 return to see if you qualify for the EV credit according to this IRS source. I cannot find specific information about 2021 Tesla but I suggest applying for the credit in the 2021 software and plug in the VIN to see if it is eligible or not.

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Electric Car Tax Credit for 2023

Thanks, I will try that. I hope the 2021 software is better than I recall it being...

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