$7500 tax credit

$7500 tax credit

I purchased a model x in 2017 with the understanding I would be eligible for a $7500 federal tax credit.
I am now told that I might only receive 10% of that amount. Any similar experience from others?

reed_lewis | 27 mars 2018

The federal tax credit is based on how much your total tax liability is for the calendar year you purchased the car.

If you have regular income from working, then you will be paying over $7500 in federal taxes for the year.

If OTOH you do not have a large tax liability, then the credit will not give you money back. It is not refundable.

So you must have a very low regular income, and instead most of your income is come capital gains.

But anyways, Tesla has nothing to do with this. It is all your personal tax situation.

reed_lewis | 27 mars 2018

But in 2016, I bought a Tesla and a Chevy Volt and we got the full $15K federal tax credit. Of course, both my wife and I work for a living with regular W-2 income.

jordanrichard | 27 mars 2018

rdeluxe, though reed_lewis is correct, who told you that you were only getting $750?

SUN 2 DRV | 27 mars 2018

OP: And are you judging that based on the size of your refund or on the size of your allowable tax credit? Are you sure your taxes have been prepared correctly?

And of course "Always consult a qualified tax advisor."

EVRider | 27 mars 2018

Just a clarification: You get the tax credit for the year in which you took delivery of the car, not necessarily when you purchased (ordered) it. Anyone who has already taken delivery of a Tesla is entitled to the full $7,500 credit if their tax liability is high enough.

And, since others have been confused by this before, your tax liability has nothing to do with what you owe or get back when you file taxes, it's the total tax due regardless of any taxes withheld or paid during the year. For 2017, this would be line 63 on Form 1040.

Rocky_H | 27 mars 2018

@rdeluxe, You are REALLY making it difficult for us to help you with this.

Quote: "I am now told..."

By WHO?!

Quote: " that I might only receive 10% of that amount."

For what reason? There had to have been some kind of explanation given.