2022 Tesla Model 3 MSRP increase after 6/1/2022

[dsolomatin]

Hello,

I Purchased my Tesla Model 3 Long Range at the beginning of the year when MSRP was 53440.00 and took delivery before the MSRP went up to 56k+. Turbo Tax is telling me that Tesla does not qualify for the tax credit when in reality when I bought it was under 55K. What can I do to correct this? I have all of the supporting paperwork.

Thank you,

[dmertz]

No Tesla acquired in 2022 qualifies for the credit because Tesla had sold more than 200,000 qualifying vehicles before 2022.  The Inflation Reduction Act eliminates this manufacturing limitation only for vehicles acquired in 2023 and beyond.

https://www.irs.gov/credits-deductions/manufacturers-and-models-for-new-qualified-clean-vehicles-pur...

[dsolomatin]

So where do I need to go in TurboTax? In order to make it accept my vehicle? I entered the number and all of the purchase details and message that I received was that tesla not no longer qualifies.

[AnnetteB6]

You will not be able to claim the EV tax credit at all for a Tesla that was acquired in 2022.  There is nothing you can do within TurboTax to include this credit on your tax return.  

As stated by dmertz above, the EV tax credit for all Tesla models had already been phased out for any vehicle acquired after 2020.  The link in the answer above will show you the details of this phase-out.

If your vehicle had been purchased in 2023, then it would have qualified for the credit on your 2023 tax return according to the information shown at this link Manufacturers and Models for New Qualified Clean Vehicles Purchased in 2023 or After.