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Level 2
posted Feb 7, 2023 11:56:04 PM

I purchased a Tesla model Y long range (7 seater) in August 2022, according to IRS, it's eligible to $7500 tax credit, when I fill in such info in Turbo tax , it's $0.

it's showing "Qualified Plug-in Electric Drive Motor Vehicle Credit"    $0

0 5 443
5 Replies
Level 2
Feb 8, 2023 12:06:29 AM

I saw some message like this.

 

Instrestingly,  from "Your tax breaks", I saw this.

 
 

 

But  it doesn't change any total refund number.

 

Can someone help to explain this? 

Level 9
Feb 8, 2023 4:15:10 AM

In order to get the $7000, you must owe $7000 in taxes.  It is a non-refundable refund, so you only receive it if you actually owe taxes.  If you owe zero in taxes then you get zero in electric car refund.

Level 15
Feb 8, 2023 5:41:18 AM

No Tesla purchased in 2022 qualifies for the credit due to Tesla having produced more than 200,000 vehicles.  The 200,000-vehicle limit was removed only for cars purchased in 2023 and beyond:

 

https://www.irs.gov/credits-deductions/manufacturers-and-models-for-new-qualified-clean-vehicles-purchased-in-2022-and-before

Level 9
Feb 8, 2023 6:08:09 AM

It does qualify for the credit, but you only get the credit for the amount of taxes that you owe.

Level 15
Feb 8, 2023 6:19:38 AM

As @dmertz posted, it does not qualify for a credit on a 2022 tax return. No Tesla model qualified for a credit in 2022. Some models purchased in 2023 will qualify for a credit on the 2023 tax return. 

 

See this IRS article for what models qualified for a 2022 credit: https://www.irs.gov/credits-deductions/manufacturers-and-models-for-new-qualified-clean-vehicles-purchased-in-2022-and-before