How to Claim the $7,500 Electric Vehicle Tax Credit

How to Claim the $7,500 Electric Vehicle Tax Credit | Rob.CPA

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Rob CPA | Personal Finance & Tax Planning

Жыл бұрын

In this video, I walk through the Electric Vehicle Tax Credit, pre- August 16, 2022 Inflation Reduction Act changes and post the new law changes.
Make sure to watch the part regarding the 2024 tax year - a way for you to receive the benefit faster.
Finally, I show you the impact of this credit on a personal tax return.
🛑 SUBSCRIBE! : shorturl.at/fL014
Want to see if your new vehicle qualifies, check the link below:
afdc.energy.gov/laws/electric...
About my channel:
Rob CPA channel was created with a mission to provide viewers with accurate content so they can be proactive in their tax planning strategies and build financial wealth. The video topics I selected reflect real-world issues that I’ve seen our clients experience relating to their personal tax returns, retirement plans, and accounting.
The channel allows me to share my passion for taxes, personal finance, and accounting. I create content I wish schools and entrepreneurship programs/accelerators would teach their students and companies. I take complex topics and simplify them for the viewers as well as show examples.
I will be covering the following topics:
- Personal & business tax planning tips;
- Personal finance;
- Accounting;
- Investing;
- Entrepreneurship
New videos are released every week, so be certain to SUBSCRIBE! : shorturl.at/fL014

Пікірлер: 352

@enhancehomeimprovementstoo1802 Жыл бұрын

This was just the video I was looking for. Thanks.

@davidtremaine5144 9 ай бұрын

Excellent video. Very detailed and straight to the point. Thank you!

@rob_cpa 9 ай бұрын

Thank you for watching.

@napidorio 11 ай бұрын

meaning of "non refundable" was exactly the reason I searched youtube. Glad I watched your video. Thank you

@rob_cpa 11 ай бұрын

Glad it was helpful!

@rob_cpa 11 ай бұрын

check out my latest EV video - it was released about two weeks ago and provides better insight.

@kahildotay Жыл бұрын

Nice and to the point!

@ExperienceHawaiiCh1001 Жыл бұрын

I guess the question I should have asked is this, "In 2024, when the dealer can apply this at time or purchase, does it basically become a true rebate at that point, rather than the sticky wicket of a "tax credit" it currently exists as?" That would certainly be more of a useful "incentive" to me, as well as to many other Iʻm guessing. Thanks for hopefully helping me out on this seemingly crucial point of fact Rob, much appreciated!

@Grant5321 9 ай бұрын

I think you are basically signing an affidavit that says you expect to owe $7500 or more/have a tax liability of $7500 or more. If it’s less then you have to pay it back to the IRS.

@ddas3498 Жыл бұрын

Thanks for explaining this tricky subject.

@rob_cpa Жыл бұрын

Thank you for the feedback.

@mikes8839 Жыл бұрын

Ty for your video.

@RandoPandaSmiles Жыл бұрын

Well explained, thanks!

@rob_cpa Жыл бұрын

Glad it was helpful!

@Randios1 Жыл бұрын

Hello, Thank you for providing this valuable information. My situation is I reserved a Tesla Model 3 in July 2022, and then it got delivered in November 2022. However, the delivery shows I received the 2023 model. I understand there's the manufacturers sales volume cap? Was the delivery too early to receive the EV tax credit?

@UCBBears 9 ай бұрын

Hi Rob, I have a question regarding this credit when the vehicle is purchased for business use. I went to tesla website recently and looked in a Model X. At checkout, they noted that it qualifies for $7500 only if you meet the AGI. However, there is a tab for business purchase that seems to have no income limit under the inflation reduction act. Does this mean that if it is bought for business use, I can still get the $7500 without considering AGI?

@joahash7411 Жыл бұрын

Good morning. Can you please tell me if you know with the used EV price tax credit $25k includes sales tax? Total $25k or just the car price? Thank you.

@114db Жыл бұрын

Finally someone who actually puts it in numbers

@rob_cpa Жыл бұрын

Thank you.

@That_Cyber_Dude Жыл бұрын

@@rob_cpa I was told Self employed EV buyers still get the $7500 EV credit. Can you verify?

@ademojinson1187 9 ай бұрын

Hi Rob, Very helpful content, thank you very much. Do you have any videos/content on how to deal with EV credit as a Self Employed/freelancer, please? Thank you in advance.

@richardlindsay8256 Жыл бұрын

If you don't owe enough to get the entire credit do a Roth conversion that generates enough tax liability to use up the rest of the available credit.

@MarPro8114 Жыл бұрын

Does this tax credit work the same way as the solar panel tax credit?

@user-wt4xj5ip8g 11 ай бұрын

Hi Rob, Thanks for the video and detailed explanation of Tax credit. I recently (Feb 2023) purchased Plug-in Hybrid car which is eligible for Federal Tax credit of $7,500. I had some issues with the car and planning to exchange the same with Dealer but this time I am going with full Gas (No Plug-in Hybrid). I am expecting my new car sometime in September 2023. Am I still eligible to apply for Tax Credit?

@scribblemesh Жыл бұрын

What if I'm doing Estimated tax payment (Form 1040-ES) for 2023? What would happen to my EV Tax Credit?

@emilysona Жыл бұрын

How long do I have to wait to sell my EV after it was purchased with the $7,500 Federal Tax Credit?

@davidgutierrez2839 Жыл бұрын

On the other end of the income spectrum, for the next year, you have to owe at least $7,500 in taxes to get the full benefit of the credit. That's because the credit is applied against your tax bill (for vehicles purchased in 2023, you'll get the credit when you file in 2024) - and you don't get a refund if your tax credit is bigger than your total tax liability. A lot of people pay less than $7,500 in income taxes. Tens of millions of people, including many who earn more than the median income.

@the951orig 9 ай бұрын

i think this answers my question but let me just ask directly. Lets say for the next few months I want to go tax exempt at work, I know that come tax time next january I am going to have to pay that back of course. however I bought a tesla 8 months ago Feb 2023, and qualify for the full 7500$ tax credit. lets say in january I owe 5000$ in taxes, the EV credit will essentially cover that debt, right? I am not good in any way shape or form when it comes to taxes and cant seem to find an answer online. thanks for the help.

@klynch201 Жыл бұрын

What if my total tax is on line 24 is $6000..but amount i owe on line 37/38 is 0. Do i get $6000 back? Do i just need to pay federal income tax to get the credit Or do i need to 'owe'?

@pulaskicarteret9461 Жыл бұрын

If I ordered Tesla on August 17, 2022, and bought on February 2023, will I eligible for credit. $7500?

@KingTode Жыл бұрын

are small businesses eligible to write off the model y (under 6000lbs) AND qualify for the $7500 ev tax credit IF the company owner’s income exceeds $300k, BUT the vehicle is for an employee and to be claimed by the employee?

@rickystroude5091 4 ай бұрын

I bought a brand new Audi Eron S in March of 2022, Do I qualify for the $7500 tax credit? Would it be too late To file it on this year‘s taxes? I’m married now but we weren’t when I purchased the car. Last question, if I’m normally receiving a return is it pointless as this is more for a demo-graphic that normally pays taxes.

@akshitdhadwal 9 ай бұрын

I wanted to ask if lets say im on a w2 and will make about 62k this year, i pay around 2100 in mortgage and on side i have a real estate business which is 8 months old. Based on smart asset and since im already on w2 and have already payed taxes to irs will i get my money back inform of tax refund. Can i roll portal of EV credit for next year?

@brewerfan13 Жыл бұрын

Can you clarify on the AGI limitations. I was just working thru the Form 8936 line 18 instructions and it appears the AGI considered is the lower of year 2022 AGI and year 2021 AGI. Thoughts?

@rob_cpa Жыл бұрын

You have to look at line 18 - just say this amount is $10,000. Then, just say the EV credit for you is $7,500. Line 24 will be $2,500 of tax due - assuming you have nothing on line 23. If you have withholding on line 25 and other credits. you will get a refund. So you can still get a refund, with the EV credit, its just hows its calculated. You don't want to look at what's happened in the past - only the current year - 2022.

@payitforwardfastnotslow Жыл бұрын

Very helpful info, but what if a fisker ocean car (a new EV) was bought in july 2022... but delivery of the vehicle isnt expected until mid 2023. Would a person be eligible for the pre inflation reduction act EV tax credit?

@rob_cpa Жыл бұрын

Jeffery - we just posted an updated video on this topic given all the questions from our first video: kzfaq.info/get/bejne/rcCnqsuVvrqdZWQ.html Based on the IRS rules, you would follow the new 2023 EV rules. Rob

@Artofwar13225 Жыл бұрын

Thanks Rob! Super helpful. QQ for you - I just bought a Tesla M Y in March 2023 and I haven't filed my 2022 returns yet...can I use my 2021 tax returns for this?

@JustxLiving909 Жыл бұрын

Did you do it any update ?

@Artofwar13225 Жыл бұрын

@@JustxLiving909 bought the car, but i don’t qualify.

@user-pi8jx1en7f 4 ай бұрын

What happens if I leased a Tesla Model 3 and took delivery Feb 11,2023? Do I qualify for tax credit $7500?

@apkn1955 Жыл бұрын

I'm 67. Would it be a good idea to take money from 401k to get mY income up to the 7500 tax credit since it would be taxed anyway. Otherwise. My regular income would fall far. Short.

@shahadataziz1277 11 ай бұрын

help me with this scenario! If I allow my employer to take out usual amount from my paycheck then I owe IRS nothing. This also means I will get $0 out of that $7500 credit, right? What can I do to owe IRS at least $7500. Can I just ask my employer to not take out any federal tax? Is that allowed?

@ricardowhitejr Жыл бұрын

Rob if my wife and I usually get a refund. Would it be more helpful to pay less throughout the year with the thought we may then owe and can use the credit to zero out? If not and we usually get a refund the credit is essentially worthless correct?

@rob_cpa Жыл бұрын

Depending on how large your refund is, if its large, you may want to double check your W4 forms from your employers, assuming you don't own a business. There is a good witholding calculator on the IRS website to help you plan: www.irs.gov/individuals/tax-withholding-estimator

@homerjohn2789 Жыл бұрын

So should I exempt my federal tax

@steveshaw5300 Жыл бұрын

Thank you for the videos. I have purchased a Tesla these days, and it’s eligible to receive $7500 credit. I don’t have plan to purchase another EV next year, can I get the $7500 refund this or next year? (Such as by check)

@Trust_but_Verify Жыл бұрын

Assume you got the car in 2023, it's 2024 when you file tax for 2023 year that you get the credit.

@steveo321able Жыл бұрын

Hi, I see someone asked this question in your comment section. I'm going to ask it again I know the 7500 apply to 2023 models. But when you started the video you was talking about buying a car in 2022 year should we still file our taxes with that paperwork for the 22 Model even though the new tax Arrangement is for 2023?

@rob_cpa Жыл бұрын

Yes, the credit is good for 2022, but for certain vehicles. Here is an article from the IRS with more details: www.irs.gov/credits-deductions/credits-for-new-electric-vehicles-purchased-in-2022-or-before#:~:text=If%20you%20bought%20a%20new,least%205%20kilowatt%20hours%20(kWh)

@steveo321able Жыл бұрын

@@rob_cpa Thank you for getting back to me. But my car was made in Germany and yes I did pick the car up after August. My question should I still fill out that form when I go to do my taxes to see if I get the EV credit or not? I know you said that it would qualify if it makes the weight and everything like that but when I read down further it says the car have to be made in North America.

@DianaUng Жыл бұрын

@@rob_cpa I saw that even if you bought your car in 2023, you can use the preceding years AGI to qualify for the rebate. How does this work if for 2022, a person is single and meet the AGI, but gets married in 2023 and doesn't meet AGI. Can they still file for 2022 single meeting AGI for the rebate?

@aimeedinwiddie7057 9 ай бұрын

Hi Rob! Thank you for the info! I typically don't owe anything by the end of the year, I usually get a refund when I do my taxes. Should I adjust my tax deductions for the remainder of the year? Sounds like I won't be getting anything for buying a Tesla 3 this year, unfortunately. I would have changed my tax deductions months ago if I knew that! I am single with no dependents. Thank you for your feedback!

@ChopOn414 7 ай бұрын

Same question. That's beyond stupid if this is true.

@byoung0228 10 ай бұрын

Hiya- thanks for the video & input. I’m confused by your example, Ferris & Sloan’s AGI is above 300k but you still reduced their tax liability by the 7,500. Wouldn’t their AGI have to be below in order to qualify?

@rob_cpa 10 ай бұрын

Thanks for watching the video. This was an older video. I created a newer one about 2 months ago with the new rules for 2023.

@bradbenson4468 Жыл бұрын

Question - I am an early retiree. I purchase medical insurance thru the medical insurance exchange in my state (Minnesota). In 2022, I owed some of my subsidy to the federal government as my income was higher than I had anticipated. Now, I purchased an electric vehicle in 2023. So, hypothetically, if my tax bill in 2023 is $5000 plus I owe an additional $3000 for my due to under payment of my premium subsidy. Therefore my total tax bill would be $8000 ($5000+$3000). Would I be able to use the $7500 credit or only $5000 for the income tax portion? Thanks.

@rob_cpa Жыл бұрын

The key is line 18 on your personal tax return for 2023...if there is an amount greater than your EV credit, then it will help reduce your liabiliy.

@fr402s Жыл бұрын

jaguar ipace works ?

@maddogsTroy Жыл бұрын

So if you have other deductions does this credit come after or before? For example if I owe $8000 in taxes before I start doing my deductions, but after them, I get money, would i not benefit from this tax deduction? Also I usually have dependents but I file as if I'm single even though I'm married and have childrand. If I buy a vehicle that qualifies for the tax reduction should I just change my W2 so that way I get less tax taken out and owe more money at the end of the year so that way I could take advantage of this deduction?

@Trust_but_Verify Жыл бұрын

if after all your deductions and your tax liability is up to $7,500 then you can get the $7,500 back regardless of what tax amount you paid.

@gabrielrabelo4968 Жыл бұрын

Non refundable credits are applied before refundable credits

@davidz7858 Жыл бұрын

check the link: kzfaq.info/get/bejne/r9eXkrFmrZ7PlmQ.html, this video mislead people

@alecsouriyadeth4593 10 ай бұрын

Hi this might be questions answered already. But when would I have to have the ev vehicle purchased so I can still use it for my taxes this year. Is it before Jan 2024?

@rob_cpa 10 ай бұрын

Typically, you will need to purchase it and take ownership/hold of it before 12/31/23. Also, make sure the EV you are buying is on the approved list. Some EVs are no longer on the list or the credits have expired. You will also want to check with the dealer as well.

@mvue1794 Жыл бұрын

I want to make sure I under it correctly; because of the nonrefundable rule. Let's say I owed the fed $10,000 2023 tax return and I made my quarterly estimate payments of $2500 per x 4. I want to take advantage of the EV tax credit therefore when making my estimate payment I would pay (1) payment instead of all four payments. The final tax return document should compute with the ($7500) credit and apply against what I owed and my estimated payment will also apply therefore it will zero out my dues, correct?

@rob_cpa Жыл бұрын

Please see my updated video released today on this topic. kzfaq.info/get/bejne/rcCnqsuVvrqdZWQ.html The new video just focuses on the 2022 tax year - so if you bought and took possession of the EV in 2022, the video applies to you. I walkthrough a tax return example.

@coreydouglas1920 9 ай бұрын

Great breakdown, How certain are you that we are able to get point of sell credit in 2024

@rob_cpa 9 ай бұрын

As of now, it’s still on…but I wouldn’t be surprised if Congress changes it

@Kechioh 9 ай бұрын

If you owe back taxes for a number of years, are currently on a payment plan with the IRS, can the tax credit be applied to that amount? or does it only apply to your taxes owed for 2023? thanks

@rob_cpa 9 ай бұрын

it would only apply in the year you bought the car...but if you end up getting a refund, you can apply that to prior year taxes. Depending on your situation with the IRS, they may just apply that refund automatically to back taxes.

@Atomazersky Жыл бұрын

I've searched long and hard and I can't find the answer. Is this credit a 1 and done kind of thing or can you get a new car every couple of years or even yearly? Also how long do you have to keep your car?

@rob_cpa Жыл бұрын

you can only get one credit per vehicle.

@Tesla-Fan 9 ай бұрын

Hey Rob, quick question. What if Line 11 have $30k AGI and Line 37 have $0 for amount owe section for 1040 form? would it be qualify for $7500?

@rob_cpa 9 ай бұрын

check out my latest EV video - its really line 18 that drives it all for the 2022 tax year.

@beautybytrish1 Жыл бұрын

We bought a Tesla Model Y in 2021 but didn't take delivery until April 2022. It was purchased before the prices went up and Tesla honored the price from when we ordered it. Question: Do we qualify at all for any type of tax credit? Based on your video we don't but we were told if it was under I think they said 55,000 we would qualify? Then of course it seems that they no longer allow tax credits for Tesla's? Just making sure I have the facts. Thank you so much!

@rob_cpa Жыл бұрын

If the dealer can provide proof that you are part of the original Tesla credits, you might be able to qualify for it.

@theenp3889 Жыл бұрын

Quick question. If you are certain you wont owe anything the year you file...could you take advantage of the credit by maxing out (for a certain period of time) the dependants to build up the credit owed to then be relinquished?

@rob_cpa Жыл бұрын

I'm not sure I follow...can you rephrase your question? FYI - I'll be posting another video tomorrow regarding the EV credit.

@JJ-uh7jh Жыл бұрын

Hey I have a question hopefully you can help me. Let’s say I made $200,000 last year on self employment and this year I made $50,000. Can I claim the credit on the $200,000? Thanks in advance! Bought a Model Y LR. 2023

@messedup5424 Жыл бұрын

Correct me if Im wrong but the credit applies to the line 16 amount NOT line 37. If line 18 is 7500 or higher then youd get the full credit on line 20. Thoughts?

@rob_cpa Жыл бұрын

Please see my updated video: kzfaq.info/get/bejne/rcCnqsuVvrqdZWQ.html - the original was prepared before guidance came out.

@lukeelliot3 Жыл бұрын

The taxes are taken out of my check bi-weekly so if I’ve already paid $12,000 in taxes throughout the year. So if I get a tax credit reducing my tax liability from $12,000 to $4500. Would I see any of that money in my tax refund after filing taxes?

@rob_cpa Жыл бұрын

Are you asking about the EV credit? if so, you need to check line 18 of your tax return...what does that show as total tax? Is that above your EV credit?

@anupriyakaushik2922 Жыл бұрын

Hi Rob, I am looking to buy an EV which currently qualifies for $7500 tax credit. I am single with $125k income. My federal taxes gets witheld throughtout the year and I do receive some refund at the end of the year. So does that mean I will receive additional $7500 in refund (but as your video suggests it is non refundable)?

@rob_cpa Жыл бұрын

I just posted a new video last Friday. Please watch it as it will answer your questions.

@byubasketbal Жыл бұрын

Hi Rob, I'm still a bit confused about how this applies to my specific situation. My annual income is about $140,000, so I pay more than $7,500 in taxes, but I'm a run-of-the-mill W2 so federal taxes are withheld throughout the year. By tax season, I usually get a refund for about $3k as I have a couple dependents. Since I'm getting a refund every year, does that mean my tax liability is 0? If that's the case, the credit would have no value to me.

@Jim-yh5uj Жыл бұрын

I believe you would get back $10,500 total

@rob_cpa Жыл бұрын

Hi Brandon - what does your line 18 show for 2022? I created another EV tax credit video that provides more insight on this credit.

@Rturroo Жыл бұрын

Hi rob is the video releasing soon?@@rob_cpa

@Kumar-nx5ly 11 ай бұрын

Please provide answer for this main comment. I am in similar situation too.

@byubasketbal 11 ай бұрын

@@Kumar-nx5ly I have since confirmed that your "refund" doesn't matter, just your total tax liability on the year. In my situation above, the refund would be $10,500 because my overall tax liability was over $7,500

@jigneshpatel9950 9 ай бұрын

Excellent video! I purchased Fisker Ocean before Aug 16, 2022 and haven't received possession yet. I file taxes married filing jointly and AGI is below 300k. Should I qualify for $7500 EV credit? Also, this car is purchased for business use only. Do I also qualify for business vehicle credit for the tax year 2022. I've taken an extension for 2022 taxes. I'm in the process of finalizing my tax return. I'd appreciate it if you can reply quickly. Thanks

@rob_cpa 9 ай бұрын

Thank you for watching. Please check out my current EV credit video - it provides more information. The key is what your line 18 shows on your tax return. kzfaq.info/get/bejne/jNh1otV1s5raaJs.html

@manuelgonzales9121 Жыл бұрын

What if a EV buyer sells his vehicle in the same year he bought it and sells it after only a week of use. Who claims the EV tax credit?

@sancupid Жыл бұрын

So if i purchase a EV this year which results in credit of $7500 and Line 24 on my 1040 is $ 10900 and line 33 is $18400. According to IRS form 1040 Line 34 if Line 33 is > line 24 then it results in refund. So will there be a refund even if it is non refundable tax credit?

@rob_cpa Жыл бұрын

I will be posting a new video tomorrow to discuss the changes in the 2023 tax year. Toward the end of the video, I'm going to explain how the nonrefundable credit works so people can see it. After watching the new video, let me know if you have any further questions.

@Jose-xj6xl Жыл бұрын

I purchased a 2022 KIA in May 2022 and installed the charging system in my home in June. My tax refund for the vehicle is only giving me $4,500. Should I be getting the full $7,500?

@rob_cpa Жыл бұрын

If you remove the vehicle, what is your refund? Also, depends on your Kia - see the site below - not all Kias are elligble for the full $7,500 credit: www.fueleconomy.gov/feg/taxevb.shtml

@seanl2863 Жыл бұрын

Is there a limit to the Federal tax credit for EVs.? Eg: So just but 1 Tesla 3/19 and want to buy another one by 3/31 but would we get the Fed tax credit x 2? ($15k).. We meet the requirements under their requirements

@menacersf Жыл бұрын

i am wondering the same. does anyone know?

@bigdogmitch2 5 ай бұрын

What do you need to file for it? Do you know anyone that has done it? I was told to just bring my registration paper when I file my taxes.

@rob_cpa 5 ай бұрын

Good question. It's tax form 8936. You'll need your VIN, cost paid, etc. This gets reported in your personal tax return. Whoever is preparing your tax return will need this information.

@chiefsal9357 Жыл бұрын

My line 18 is $9621. Line 21 is $4000 for child tax credit. Line 24 is $5621. Do I get the full $7500 or do I get partial credit?

@wayneguy6043 Жыл бұрын

Part

@thirithhut3115 Жыл бұрын

This applies to electric vehicles. How about Hybrid vehicles still qualify for tax credit in 2023 if I buy Car/SUV this year?

@rob_cpa Жыл бұрын

Some do...you should check out this website to see if your vehicle is listed: afdc.energy.gov/laws/electric-vehicles-for-tax-credit#/tab-2023

@robertmcintyre9439 Жыл бұрын

For 2024's change to the dealer being able to do the heavy lifting on this, how will each individual's differing AGI's, etc be factored in by the dealer? Or will they just give you the maximum, and then report that to IRS so that when tax time rolls around the IRS will know that number and adjust what you may owe back to them at end of year from dealer credit accordingly? I am married head of household filing jointly, no dependents, $80k annual gross salary, with ACA health credits throughout the year that make me owe about $4k to IRS at end of 22. Want to buy new Tesla base rwd 3 for $40k, which currently is eligible for $7500. Therefore, my understanding is, IRS will actually ask me for $0 at end of year paid, but the other $3500 from the initial $7500 disappears.?.?.? If I was "lucky" enough, or rejigger things enough, I could get what I owe up to $7500 at end of year and then that gets zeroed out by IRS as they give me the entire amount.?.? Do we know how long these current rebates are good for? Has the Fed put more sales number caps on various makes and models based on units sold? Thanks so munch for any input, super informative stuff!

@longgiap4100 Жыл бұрын

Hi, I would like to ask. I purchased tesla model 3 2023 in December 19 can I still claim the ev tax credit if I file?

@longgiap4100 Жыл бұрын

December 19 2022

@Trust_but_Verify Жыл бұрын

No, the tax credit only starts with vehicles purchased from 1/1/2023.

@rob_cpa Жыл бұрын

Please see this site:afdc.energy.gov/laws/electric-vehicles-for-tax-credit#/tab-2022 Tesla sales cap was met, so you can't get the credit.

@pacsunzr2 Жыл бұрын

how do these nonrefundable tax credits benefit families with AGIs

@rob_cpa Жыл бұрын

You could change your W4 withholding and claim more allowances, so your paycheck is higher to get this credit...but before you make any changes to your W4 form, work with your CPA to forecast/estimate so you can get the credit.

@skibbydweez2647 9 ай бұрын

great explanation. Didnt know you can request the car compnay use it towards the sale price. Also thats why deduction is better than credit. If you low income and wont owe more than $2-4k in taxes you not getting any refund if you had the added $7500 deduction.

@rob_cpa 9 ай бұрын

Thank you. Please make sure to check out my latest EV credit video - its updated and provides more information. kzfaq.info/get/bejne/jNh1otV1s5raaJs.html

@bigdean1995 Жыл бұрын

Question, so in 2024 you still will need to owe at least $7,500 in taxes to get the credit applied at point of purchase? So if I owe $0 taxes I won’t get anything.

@rob_cpa Жыл бұрын

Look at line 18 of your tax return - that's the main section...if its above $0, you'll be able to use some of the EV credit.

@akshatsharma2105 Жыл бұрын

Hi, I am a salaried employee and I am already paying my federal taxes per pay check. At the end of the year, I doubt if I will owe any tax to the government. Rather I will be eligible for a tax refund. In my situation, how can I claim the ev tax credit if I don’t owe anything to the government? Is there any way I can change my W4 form so I end up owing the federal tax to the government and utilize the ev tax credit ?

@rob_cpa Жыл бұрын

@alexrodriguez-bd8vl Жыл бұрын

Hi Mr Rob, thanks in advance for your help , so in my case that I make roughly 40K a year and I’m single ( this year I got back $500 refund) I would get that $7500 refund right? I’m not exactly a numbers and figures kind of person, just trying to get a simple-peace-of-mind answer, thanks again for your time

@fomc75bp 11 ай бұрын

Hello, I'm employee with W4 tax. My AGI is $40000. I pay around $10000 for federal tax this year. I'm really curious how the credit will work? Does federal will refund me with $7500 check or ?

@rob_cpa 11 ай бұрын

Thank you for watching this video. Please check out my recent EV video - it will help answer your question. I posted it about a month ago. The key is line 18.

@hamdikavak1149 Жыл бұрын

I am a regular W-2 employee and every year I get a few thousand $ refund. Recently bought an EV that qualifies for the EV tax credit. Should I file a new W-4 to reduce my withheld money so I can owe money to IRS? Or I probably didn’t understand the point of this video. Thank you

@rob_cpa Жыл бұрын

No...the key is to look at line 18 of your tax return...if it shows a tax amount, then you can use the credit to reduce that tax amount. the W4 is a different matter. excluding the EV credit, if you've been owing taxes each year, I suggest you change your W4 form.

@j3rmy916 Жыл бұрын

So i claim exept the possibility of me getting the full tax credit is more likley ?

@rob_cpa Жыл бұрын

What does line 18 show on your 2022 tax returns?

@passionfruitpassionfruit2034 Жыл бұрын

What if you get a refund every year will the 7500 get added to refund amount and u owe no taxes?

@rob_cpa Жыл бұрын

@fabioleal3442 Жыл бұрын

How can I get with you to be my CPA ?

@HieuNguyen-dg9gd 9 ай бұрын

Dear Sir. I signed a contract in March 2022 but I got the delivery for my model y on Nov 18, 2022. Can I qualify for ev tax credit if I live in oregon and my tax liability was over 7500.00 in 2022 tax year? Thank you in advance.

@rob_cpa 9 ай бұрын

The tax credit is at the Federal level. Please check out my updated video that I posted about two months ago on this topic - I show you where you need to look on your tax return to see if you can get the credit.

@just.do.something 11 ай бұрын

So what if the government owes you 5000. Then tax credit would just be added to amount owed...12,500 back form government now?

@denniscodringtonjr1884 Жыл бұрын

Hello, My wife and I purchased and took delivery of our Tesla Model Y Performance in March of 2022. Do we qualify for any credits

@rob_cpa Жыл бұрын

You might be able to...I know the Tesla credits stopped at some point in 2022 because they reached their capacity. Here is a website you can use to check: afdc.energy.gov/laws/electric-vehicles-for-tax-credit

@Trust_but_Verify Жыл бұрын

No, the tax credit only starts with vehicles purchased from 1/1/2023.

@marcelnwaukwa4814 Жыл бұрын

I don’t get it. So I can only benefit if I owe money in tax after filing my tax. As someone that always get a refund, does this mean the tax credit is useless since I don’t owe the federal anyways?

@rob_cpa Жыл бұрын

Please see below - a new video that was posted later - this should answer your question. kzfaq.info/get/bejne/rcCnqsuVvrqdZWQ.html

@manishgaikwad7781 5 ай бұрын

What if I have a federal tax refund based on the taxes I paid from W2 and income is below 300k MFJ How do I claim the 7500 tax credit

@rob_cpa 5 ай бұрын

It will depend on your line 18. You should try to enter the information in your tax software - form 8936. Since you're receiving a refund already, you may not receive the full benefit.

@manassubudhi1597 Жыл бұрын

If someone is getting tax refund in filing, will this EV tax credit help in anyway?

@rob_cpa Жыл бұрын

Yes, you could get a larger refund..please watch my updated EV video - it all depends on line 18 of your 1040.

@davidcwilkerson Жыл бұрын

So if my wife and I pay towards our tax liability out of our paychecks throughout the year so that we do not owe anything when we do our 2023 taxes next year then we cannot get the $7,500 credit because that would be a refund?

@rob_cpa Жыл бұрын

No, that is not correct. You need to look at your line 18 on the tax return - form 1040 - it shows a tax amount. If that tax amount is greater than the credit, then you get to claim the credit or a portion of it.

@chintanthakker4129 Жыл бұрын

what about commercial electric tax credit?

@iiHazmat Жыл бұрын

is it legal to maybe claim more allowances (get less taxes taken out of your paycheck) to actually owe enough to use this credit?

@Trust_but_Verify Жыл бұрын

That's not how you calculate it. 5:48 Line 24 needs to be $7,500 or more.

@iiHazmat Жыл бұрын

If you change your allowances on your W4 so that less money is taken out of your paycheck, it stands to reason that you would owe more than you usually do. Assuming you have the same filing status as usual

@knightwatch1306 Жыл бұрын

If I qualify for 7500 EV credit and say I am supposed to receive another 8000 refund from IRS. Will I receive a total of 15500 from IRS after I file my tax?

@rob_cpa Жыл бұрын

Look at line 18 of your tax return for 2022 - is that amount greater than $7,500? You could end up with $15,500, but it depends on your Tax on line 18.

@fomc75bp Жыл бұрын

I receive w2 1090. Do I get credit💁

@abcdjadu Жыл бұрын

Hello, Great content and information. If you purchased an EV in Jan 2023, does the $ 7500 EV credit apply when filing 2022 taxes in Apr 2023 or does it apply when filing taxes in 2024 (since the vehicle was purchased in 2023)? Thank you, and your response would be appreciated.

@rob_cpa Жыл бұрын

If you purchased in 2023, then it applies on your 2023 tax return that is filed in 2024.

@abdihassan9872 Жыл бұрын

Is this also apply if you purchased a car in 2022?

@rob_cpa Жыл бұрын

Yes, here is an article from the IRS on what applies in 2022, if you purchased in 2022: www.irs.gov/credits-deductions/credits-for-new-electric-vehicles-purchased-in-2022-or-before#:~:text=If%20you%20bought%20a%20new,least%205%20kilowatt%20hours%20(kWh)

@ketangulati7674 Жыл бұрын

Is there any chance to get any refund if I bought a new tesla on Dec 28 2022....

@rob_cpa Жыл бұрын

I believes the Telsa's reached max credit capacity in 2022 - 200,000 -so that late in the year, they wouldn't qualify.

@kidzrockuniversity6967 9 ай бұрын

Just want to confirm that I got this right. I'm looking at buying a 2023 Tesla Model 3 and fit all the criteria for the credit. Because I have set up the amount taken out for taxes throughout the year so I won't get much back or owe very much, I won't be able to able to get much, if any of the $7,500 credit, correct? We usually get back or own a hundred or so dollars each year. Thanks so much for the video!!!

@rob_cpa 9 ай бұрын

Thank you for your question. Please watch my latest EV credit video: kzfaq.info/get/bejne/jNh1otV1s5raaJs.html The credit doesn't relate to how much tax you have withheld from your paycheck...its driven from line 18.

@kidzrockuniversity6967 9 ай бұрын

@@rob_cpa After I posted my question, I saw where you had mentioned the 2nd video and watched it. It answered my questions. Thanks so much for making it!!! Have an AWESOME DAY!!!

@mikekuo1889 Жыл бұрын

How about independence contract thx

@GeekGamerr Жыл бұрын

Hey question If I already made my taxes how do I claim the tax credit

@rob_cpa Жыл бұрын

So you filed your 2022 taxes but forgot to include the EV credit in 2022? If you qualified for the EV credit in 2022, you can file an amended 2022 tax return.

@kfletcher2005 10 ай бұрын

I thought that since Ferris filing married jointly having an AGI of 400K+, they get kicked out of the tax credit? Am I wrong? But you went on to give the credit despide their income overage. What's up with that?

@rob_cpa 10 ай бұрын

This was an older video for 2022. A new EV video has been created with the new rules.

@JJ-uh7jh Жыл бұрын

@rob_cpa Жыл бұрын

Please watch my latest EV video - I get into more details. It really depends on line 18 of your tax return.

@bigbawsz2054 Жыл бұрын

So basically every year I tend to owe only $500. Since I just bought a model Y I should modify my withholdings for more take home pay until I’ll owe the IRS 7,500? Otherwise ill lose the credit?

@rob_cpa Жыл бұрын

No, you don't necessarily need to modify your withholding. What does your line 18 of your 2022 tax return show? Just say it shows $3,000...then the most you could get from the $7,500 credit is $3,000.

@bigbawsz2054 Жыл бұрын

@@rob_cpa thanks for the reply! My line for 2022 shows I owe $700. To be completely honest I want to take full advantage and get the $7500. Do you think it would be best to claim exempt for a few months so I can maximize the credit? It just seems if I typically owe 500 to 700 I’m loosing out on that credit. I’m not a tax pro by any means so I might not know what I’m talking about lol

@give-or-take Жыл бұрын

great video. say i owe 20,000 taxes in 2023 , but TDS withholding at paychecks by itself= $18000...... i buy a n EV in 2023 and qualify for the $7500 NON_REFUNDABLE credit, how much will i be refunded when i file my taxes in 2024? $0 (or) 20000-18000-7500 = $5500 credit?

@rob_cpa Жыл бұрын

Here is a new video I just created given all the questions from the first video. kzfaq.info/get/bejne/rcCnqsuVvrqdZWQ.html You want to look at line 18 on your tax return - Tax before non-refundable credits, then from there, you reduce it by credits, such as the EV credit.

@Lovo369 6 ай бұрын

Not available for resale? So I can’t sell it to a dealer or trade it?

@rob_cpa 6 ай бұрын

In 2024, if you buy a new EV and if it qualifies, you can sell the credit to a dealer.

@raha1277 Жыл бұрын

Is there a way to adjust amount of tax taken to owe so you can use the credit, also where would that be on a W2

@Trust_but_Verify Жыл бұрын

adjust the tax withholding through W2, notify your HR. However you can still get the tax credit in 2024 as long as you have $7,500 in tax liabilities BEFORE any tax payment.

@davidz7858 Жыл бұрын

Resubmit your W4 form

@saurabhmarwaha2665 Жыл бұрын

Increase your income

@raha1277 Жыл бұрын

@@saurabhmarwaha2665 Not true, actually found its tax liability not tax return. i pay 120k in taxes so income past about 60k doesnt matter.

@bent3942 Жыл бұрын

I’m a college student, and my parents qualify for the credit. Would they be able to purchase the car, receive the full credit, and then eventually the title be transferred to me?

@rob_cpa Жыл бұрын

Good question...maybe suggest they do this after getting the credit - wait a year...then if they transfer the title to you, this would be a gift - assuming its under the Gift rules (see my video), that may work.

@jkimo1178 5 ай бұрын

If I purchase a vehicle in 2024, do I fill out the necessary forms on my taxes on the 2024 tax year ?

@rob_cpa 5 ай бұрын

Correct. So if you bought in 2024, this will be a credit on your 2024 tax return that you file in 2025.

@jkimo1178 5 ай бұрын

@@rob_cpathanks….. does it matter what kind of taxes? (e.g. ROTH conversion)

@gilbertbarraza871 Жыл бұрын

So I'm not sure I understand When it comes to tax refunds does this apply at all? I'm married have a child but my w2s are single and 0 to have irs pull max amount. So would this even apply to me? I never owe anything in taxes since they pull the max to cover. So how would this work for someone like me?

@minikonabrew Жыл бұрын

I have the same question and have been looking for an answer to this, but have yet to find a video clearing up the confusion. All these videos repeat the same thing. Hopefully he can respond to this.

@gilbertbarraza871 Жыл бұрын

@@minikonabrew hasn't yet here's to hope lol

@bigpoppa4094 Жыл бұрын

Wondering the same thing. I never owe anything at the end of year. What if I did the withholding: I have the option of withholding having to pay the feds taxes on my bi weekly checks. If I did this for the entire year. Does it creates a tax liability at the end of the year, and I could utilize the EV tax credit? The elephant in the room is asking?

@dannyr210 Жыл бұрын

I’m in the same boat and have the same question. I’m married, 2 kids but claim single and 0 to let them take the most taxes and end up getting a refund. In order for this to be beneficial, I’d have to adjust my withholdings (and get more on my checks) and hope I end up owing a max of 7,500 which would then be offset by the EV credit? Woulda been nice to just let it increase your refund if you get one esp if they’re going to let you trade the credit next year to the dealer and knock it off the msrp.

@gilbertbarraza871 Жыл бұрын

@@bigpoppa4094 if you do the withholding for sure you'd see the credit to reduce your liability. But that's a lot of work haha

@pete0078 9 ай бұрын

Bob - can 2 friends be on the title and one claim tax credit as only one is under income limits?

@rob_cpa 9 ай бұрын

Only one can claim the credit and its typically the user of the vehicle.

@josephlogel7158 Жыл бұрын

Can you have a negative tax liability? For example I typically file head of household and claim 2 children and my returns are usually $7000... If I claim the EV tax credit will my tax return increase to $14500?

@clopez84 Жыл бұрын

Negative.

@gabrielrabelo4968 Жыл бұрын

This credit can only reduce your tax liability to 0, after that only refundable credits can increase your refund

@gilbertgarcia831 Жыл бұрын

It's a credit, not a refund if you owe money to the IRS let's see you owe $7500 and you received the full $7500 credit you will be even ..

@vegasbaby3669 Жыл бұрын

In you example, if That married couple filing jointly made $430,00 as their AGI, as you stated in your example, then actually, they would not qualify for the credit if they went out and bought a EV. But you said they would?? Am I missing something here???

@Trust_but_Verify Жыл бұрын

He said they could NOT.

@rob_cpa Жыл бұрын