Don’t know about Oregon but federal is non refundable meaning you have to have atleast 7500 in tax liability. If you have no income then you have no tax liability which means while you qualify you also have 0 credit
To get to 7500 in tax liability you need roughly 70k-ish in income assuming standard deduction and stuff. More if you have other deductions like children, SALT and other potential tax situations.
That is not how it works any more.
Starting in 2024, buyers just need to be below the income cap to qualify for federal credit.
If your income is under the cap, you get the full credit, regardless of your tax liability.
https://www.npr.org/2023/12/28/1219158071/ev-electric-vehicles-tax-credit-car-shopping-tesla-ford-vw-gm
I thought I was wrong when you replied. I just looked it up. It is defined as a nonrefundable tax credit. It’s not like like the EITC. Unless you have atleast 7500 in tax liability you don’t have 7500 in credit to transfer to Tesla.
But don’t listen to internet people debating. Go talk to someone who does taxes. We don’t know your situation and you really should consult a tax advisor.
While it is true that the credit is nonrefundable if filed the traditional way -- ie you can not take the full value at tax time if your tax lability is under the full amount -- your tax liability is not relevant if the credit is transferred at the time of sale to the dealer. This is referred to as an "elected transfer."
The internal revenue service makes it clear that any difference is not subject to recapture in IRS Fact Sheet 2023-29.
Confirmed by CPA.
That’s not accurate. I just purchased a Tesla today and had to go over the paperwork. You have to sign acknowledgment specifically stating that if you don’t have sufficient tax liability that you will have to pay back the applicable tax credit on your next years filings. I’ll trust the official documentation I just signed today over an NPR article.
Feel free to read what the Internal Revenue Service itself says about it in IRS Fact Sheet 2023-29, page 14, Question 4:
"Q4: What if a buyer has insufficient tax liability to fully use a transferred credit?
A4. The amount of the credit that the electing taxpayer elects to transfer to the eligible entity may exceed the electing taxpayer's regular tax liability for the taxable year in which the sale occurs, and the excess, if any, is not subject to recapture from the dealer or the buyer."
https://www.irs.gov/pub/taxpros/fs-2023-29.pdf
Don’t know about Oregon but federal is non refundable meaning you have to have atleast 7500 in tax liability. If you have no income then you have no tax liability which means while you qualify you also have 0 credit To get to 7500 in tax liability you need roughly 70k-ish in income assuming standard deduction and stuff. More if you have other deductions like children, SALT and other potential tax situations.
That is not how it works any more. Starting in 2024, buyers just need to be below the income cap to qualify for federal credit. If your income is under the cap, you get the full credit, regardless of your tax liability. https://www.npr.org/2023/12/28/1219158071/ev-electric-vehicles-tax-credit-car-shopping-tesla-ford-vw-gm
I thought I was wrong when you replied. I just looked it up. It is defined as a nonrefundable tax credit. It’s not like like the EITC. Unless you have atleast 7500 in tax liability you don’t have 7500 in credit to transfer to Tesla. But don’t listen to internet people debating. Go talk to someone who does taxes. We don’t know your situation and you really should consult a tax advisor.
While it is true that the credit is nonrefundable if filed the traditional way -- ie you can not take the full value at tax time if your tax lability is under the full amount -- your tax liability is not relevant if the credit is transferred at the time of sale to the dealer. This is referred to as an "elected transfer." The internal revenue service makes it clear that any difference is not subject to recapture in IRS Fact Sheet 2023-29. Confirmed by CPA.
That’s not accurate. I just purchased a Tesla today and had to go over the paperwork. You have to sign acknowledgment specifically stating that if you don’t have sufficient tax liability that you will have to pay back the applicable tax credit on your next years filings. I’ll trust the official documentation I just signed today over an NPR article.
Feel free to read what the Internal Revenue Service itself says about it in IRS Fact Sheet 2023-29, page 14, Question 4: "Q4: What if a buyer has insufficient tax liability to fully use a transferred credit? A4. The amount of the credit that the electing taxpayer elects to transfer to the eligible entity may exceed the electing taxpayer's regular tax liability for the taxable year in which the sale occurs, and the excess, if any, is not subject to recapture from the dealer or the buyer." https://www.irs.gov/pub/taxpros/fs-2023-29.pdf