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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
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5 Replies

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.

I saw some message like this.

 

tesla_tax.png

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

 
 

ev_tax.png

 

But  it doesn't change any total refund number.

 

Can someone help to explain this? 

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.

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.

dmertz
Level 15

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.

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-pur...

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

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.

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-pur...

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