Recapture of Credit- 2021 Tesla Model Y

[TeslaModelY]

I bought a Tesla Model Y in 2021 and didn’t file for electric vehicle credit when filing 2021 taxes in 2022. My understanding was that I wouldn’t qualify since Tesla had the credit phased due to 200,000 manufacture limitations.

I came across the below IRS rule and wanted to know if I qualify for recapture of credit on my 2021 Tesla Model Y through tax amendment. We had filed taxes married jointly in 2022 and had paid around $30K in federal taxes. Any information is very appreciated.

Recapture of Credit

If the vehicle no longer qualifies for the credit, you may have to recapture part or all of the credit. For details, see section 30D(f)(5).

[Critter-3]

If you bought the car in 2021 then you should have taken the credit on the 2021 return NOT the 2022 return.  Amend the 2021 return to get the credit. 

[TeslaModelY]

Apologies. I corrected it, I meant when filling 2021 taxes in 2022. Do you think I still qualify under the recapture credit rule ? Thanks. 

[Vanessa A]

The recapture of a credit means you would have to pay it back to the IRS.  If you did not claim the credit, you would not have to pay anything back. This does not pertain to you. 

Section 30(d)(f)5 is talking about getting rid of the vehicle, not the credit ending on a specific vehicle.  

Critter-3 is correct.  You can Amend Your Return for 2021 to claim the credit if you qualified and the vehicle qualified in 2021

[mdeodhar]

I am in the same situation. I bought a Tesla in 2021 but could not claim the credit because of the 200000 vehicles sold condition.  Is there also a gross income limit qualification to be able to claim this credit? I can amend my return for 2021 to claim this credit but it makes sense to do that as long as there is no specific gross income cap.

Thanks

[BrittanyS]

There is an income limitation for the electronic vehicle credit.  The limitation is if you're single, and your modified adjusted gross income is over $150,000, or $300,000 for married filing jointly.  You will not qualify for the credit if your income exceeds the limit. For more information on electronic vehicle credit, see the link below:

Electric Vehicle Credit

@mdeodhar 

[Opus 17]

@mdeodhar 

if your tesla did not qualify in 2021, then it did not qualify. Certain changes to the tax law contained in the Inflation Reduction Act, modify the electric vehicle credit starting in 2023, but those changes are not retroactive.

[mdeodhar]

Thanks