Tesla Ev credit 2023: dad co signer for car

[Alecsourdough]

My father wants to be a co signer on my Tesla. To help with payments. Researching it says to use ev tax credits you have to qualify for certain income:

• $300,000 for married couples filing jointly 
• $225,000 for heads of households
• $150,000 for all other filers

If my father is co signer. But his income is 150k and mine is 73k is IRS  adding both our incomes for tax EV qualification? Even if I’m the only one who will be using this tax EV credit and my father will not ? Or do they only go off of the income qualification of who is using the EV tax. Also is there a minimum income you have to hit to be eligible? Please help thank you ! 

[NCperson]

@Alecsourdough whomever co-signs the LOAN is NOT the issue.

who's name is going to be on the TITLE determines who gets the tax credit. 

there is no minimum income required to be eligible for the tax credit.  HOWEVER, the tax credit is used to reduce Line 22 of your tax return and it can't reduce it below zero.  So for example, if Line 22 (prior to the credit) is $4,000 and the tax credit is $7500, you only get the benefit of the $4000 and the rest is lost.  

[Mike9241]

@Alecsourdough the other thing that can't be done is for your father to buy the vehicle in his own name because he will be able to use the full credit. Under the law the one claiming the credit must be the primary user. 

[Alecsourdough]

@NCpersonThank you for your answer! So just to confirm I understand your comment. Dad is okay to be co signer. And I can be the only one on title? Or does he have to be on title too if co signed? I know that’s not a tax questions just wondering if you know.

 Or even if dad is on title with me. One of us can get the ev credit and IRS income qualification will go off whoever is going to use the ev credit. Sorry just want fully confirm. 

[Alecsourdough]

@Mike9241  he’s just co signing. But I’m paying for all. Will he still have to be on title ? And if we are both on title let’s just give an example. But I’m taking the ev credit. Does IRS use both income dad and I to qualifications to see if myself can get the ev credit or

is it based on whoever is using the ev credits income qualification. 

[NCperson]

@Alecsourdough - see Q11

https://www.irs.gov/newsroom/topic-a-frequently-asked-questions-about-the-eligibility-rules-for-the-...

Dad can be a co-signer on the LOAN - that is a Bank issue and not a tax issue.  

[Alecsourdough]

@NCperson  Thank you so much! Last question? If I purchase a Tesla before Dec 31st and it is delivered. Will I be able to use the ev credit for tax year 2023 or will it have to be 2024. 

[Alecsourdough]

@NCperson 

is it based on whoever is using the ev credits income qualification.

[NCperson]

@Alecsourdough the tax credit has to be used the year the auto is put in service.  So if you take possession in 2023, it will be part of the 2023 tax return.  if you order it in 2023, but it is not delivered until 2024, it is part of th 2024 tax return.  

calm down - you are over thinking this...... read the FAQs for any additional questions.