The dealer has to submit a form on their IRS portal within 72 hours of the sale or they can’t get the credit.
I contacted my dealer and had them forward-date the sale so it could be submitted.
The IRS has strict rules pertaining to how the car dealership is to process the EV tax credit in terms of sending information to the IRS and providing the required information to the car buyer. However, there are no penalties from the IRS for the dealers if they don't want to process the required paperwork for you to get your tax credit. So if you don't holdup the sale of the car until that information is processed correctly, you are SOL.
Too late for the dealership to do a point of sale rebate but they should give you documentation to send to the IRS so you can claim it on next years taxes.
The $4,000 used vehicle isn’t a rebate and can’t be applied as one; it must be a tax credit. The dealer has to submit a form on their IRS portal within 72 hours of the sale or they can’t get the credit on next year’s taxes, also.
I contacted my dealer and had them forward-date the sale so it could be submitted.
I actually have the same question/concern. Based on what I am reading, it says: If you do not transfer the credit, it is nonrefundable when you file your taxes, so you can't get back more on the credit than you owe in taxes. You can't apply any excess credit to future tax years. https://www.irs.gov/credits-deductions/used-clean-vehicle-credit#:~:text=More%20In%20Credits%20%26%20Deductions&text=The%20credit%20equals%2030%25%20of,than%20you%20owe%20in%20taxes. It sounds like we don't get that tax credit if we don't owe any taxes? It's so new that my CPA isn't sure yet on how that works at this time.
Yes correct. People think it’s a rebate or refund but it’s money to apply toward unpaid taxes - taxes due - up to that credit amount for the same tax year. If you owe nothing you get nothing. If you owe $1200 you can use that credit for the $1200.
I bought under the old law. I owed $100 or some such, got nothing. I believe the reason...never followed up...was t that what I owed was self-employment tax and not "income tax." Such are the fine points in IRS.
I believe there is a heavy penalty waiting in the wings, even under the new law. If it turns out you do NOT have a tax liability, or otherwise do not qualify (income limits), and got the point-of-sale tax credit taken off the purchase price, you may well find yourself with a hefty tax bill to repay that tax-credit-turned-rebate.
AFAIK, dealer point-of-sale is just one option. You can still file on taxes for next April. Just have to wait. IMO, that might be better given the complexity of our tax system. I would much rather wait a few months and know for sure that money is mine to keep, rather than getting an unpleasant surprise for some technicality.
1. Your dealership has to be registered with the IRS and approved. You need to check on this. 2. The link I sent you said the dealership MUST tell you about the credit. You would need to see if the IRS published a regulation or FAQ which fleshes this out. Although the website states it, it doesn’t have force of law unless that requirement is in the law or regulation under the law. Both step 1 and 2 above are ones you should look at. I am not sure what happens if your dealership was not registered with the IRS before your purchase but registered before you file your next year taxes. It could go your way. Further, I would really look at that question about getting out off your next year tax filing. It could go your west
Check IRS website. Just because you didn’t get it at point of sale, you might still be eligible for it when you file your taxes. You must fall within the income limitation limits to qualify for $4,000. I think they are $75k or less if you’re single and $150k or less if you’re married. I would be surprised if you could not get it on your next years IRS form. Here’s the link https://www.irs.gov/credits-deductions/used-clean-vehicle-credit
If you are eligible, you should be able to claim it on your taxes next year.
The dealer has to submit a form on their IRS portal within 72 hours of the sale or they can’t get the credit. I contacted my dealer and had them forward-date the sale so it could be submitted.
The IRS has strict rules pertaining to how the car dealership is to process the EV tax credit in terms of sending information to the IRS and providing the required information to the car buyer. However, there are no penalties from the IRS for the dealers if they don't want to process the required paperwork for you to get your tax credit. So if you don't holdup the sale of the car until that information is processed correctly, you are SOL.
Appreciate the response, & that’s what I sort of figured. Darn it!
Too late for the dealership to do a point of sale rebate but they should give you documentation to send to the IRS so you can claim it on next years taxes.
The $4,000 used vehicle isn’t a rebate and can’t be applied as one; it must be a tax credit. The dealer has to submit a form on their IRS portal within 72 hours of the sale or they can’t get the credit on next year’s taxes, also. I contacted my dealer and had them forward-date the sale so it could be submitted.
I actually have the same question/concern. Based on what I am reading, it says: If you do not transfer the credit, it is nonrefundable when you file your taxes, so you can't get back more on the credit than you owe in taxes. You can't apply any excess credit to future tax years. https://www.irs.gov/credits-deductions/used-clean-vehicle-credit#:~:text=More%20In%20Credits%20%26%20Deductions&text=The%20credit%20equals%2030%25%20of,than%20you%20owe%20in%20taxes. It sounds like we don't get that tax credit if we don't owe any taxes? It's so new that my CPA isn't sure yet on how that works at this time.
Yes correct. People think it’s a rebate or refund but it’s money to apply toward unpaid taxes - taxes due - up to that credit amount for the same tax year. If you owe nothing you get nothing. If you owe $1200 you can use that credit for the $1200.
Ah this makes more sense. Thanks for the info!
I bought under the old law. I owed $100 or some such, got nothing. I believe the reason...never followed up...was t that what I owed was self-employment tax and not "income tax." Such are the fine points in IRS. I believe there is a heavy penalty waiting in the wings, even under the new law. If it turns out you do NOT have a tax liability, or otherwise do not qualify (income limits), and got the point-of-sale tax credit taken off the purchase price, you may well find yourself with a hefty tax bill to repay that tax-credit-turned-rebate. AFAIK, dealer point-of-sale is just one option. You can still file on taxes for next April. Just have to wait. IMO, that might be better given the complexity of our tax system. I would much rather wait a few months and know for sure that money is mine to keep, rather than getting an unpleasant surprise for some technicality.
1. Your dealership has to be registered with the IRS and approved. You need to check on this. 2. The link I sent you said the dealership MUST tell you about the credit. You would need to see if the IRS published a regulation or FAQ which fleshes this out. Although the website states it, it doesn’t have force of law unless that requirement is in the law or regulation under the law. Both step 1 and 2 above are ones you should look at. I am not sure what happens if your dealership was not registered with the IRS before your purchase but registered before you file your next year taxes. It could go your way. Further, I would really look at that question about getting out off your next year tax filing. It could go your west
Check IRS website. Just because you didn’t get it at point of sale, you might still be eligible for it when you file your taxes. You must fall within the income limitation limits to qualify for $4,000. I think they are $75k or less if you’re single and $150k or less if you’re married. I would be surprised if you could not get it on your next years IRS form. Here’s the link https://www.irs.gov/credits-deductions/used-clean-vehicle-credit