Tax Discount ?

[TirNaOg]

The Federal Discount/coupon/rebateI If I usually get a refund check from the IRS does that mean I dont qualify for the $7500 discount on the Model Y?

I have gotten confusing answers all over the place. Just want a simple answer to that ?

Anyone on here know?
Thanks in advance.
{ Note! if in wrong forum sorry. This one seemed that best place to drop this }

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[Gurule92]

It's all about what you owe.

So if you owe the feds 8000 and you paid them 9k, you'll get a normal refund of 1k.

If you then get the 7500 tax credit. It reduces your liability to 500. Which means you'll get the 7500 back on top of the 1k.

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Yes I see you have one too but help me out lol

 

[TirNaOg]

Thanks for the quick reply!
Looks like I wouldn't be qualifying for any discount then as I usually dont owe money.

 

[Regenshire]

Thanks for the quick reply!
Looks like I wouldn't be qualifying for any discount then as I usually dont owe money.

Are you sure?

To be very clear, most people who are not business owners have their taxes withheld from their paychecks. Look on your payslips and you will see Federal Taxes being withheld. You are paying them throughout the year instead of as a lump sum when you file.

When you file taxes, you might be getting a refund from the amount you paid them earlier in the year based on tax brackets and other items you file. You paid them upfront, its not that you don't owe anything.

Most likely you would get a rebate unless you make too much money or have some other special circumstance, up to an amount of $7500.

 

[George Costanza]

It is simply what your tax liability is for the year. If your liability is greater than $7500, your tax is reduced by $7500. If your liability is less than $7500, your tax is reduced to Zero.

Example:
a. if your tax liability for 2023 is $10,000, then it becomes $2500.
b. if your tax liability for 2023 is $5,000, then it becomes $0.

(It is irrelevant whether you owe or are owed when you file your taxes; that simply means you overpaid or underpaid during the year the taxes for which you were liable.)

 

[Cybertruck 1974]

the Foundation series does not qualify for Tax Credit. Cost is too high. Same as Cyberbeast. Looks like they are not selling Non Foundation Series yet. 20k more? nope

 

[Tunnelcat]

the Foundation series does not qualify for Tax Credit. Cost is too high. Same as Cyberbeast. Looks like they are not selling Non Foundation Series yet. 20k more? nope

He said model Y

 

[Cybertruck 1974]

He said model Y

Fed Govt said anything with that price tag so model Y, toyota, honda, whatever.

 

[NoTime]

Put simply, if you make enough to afford a new vehicle that qualifies for the tax credit you'll probably get the full amount. That is, unless you make too much...

 

[Chris9702L]

My understanding is it is a tax “credit”. If you usually break even or get my back then the credit is useless. You have to owe $7500 or more to get the full benefit.

 

[TirNaOg]

Hmm ok.
They couldnt have made this simpler!
Thanks for the explanation.

 

[CyberGus]

My understanding is it is a tax “credit”. If you usually break even or get [money] back then the credit is useless. You have to owe $7500 or more to get the full benefit.

Incorrect.

If you have a job, there is withholding taken from every paycheck. If you didn’t “owe anything” then you would get all of that back, right? “Breaking even” means your withholding matched your tax liability, and you definitely paid taxes.

Therefore, with a $7500 credit, you would get an additional $7500 back as long as your total tax was at least that much. If you didn’t make enough salary to owe at least that much in taxes, you probably can’t afford a Cybertruck anyway.

 

[Tunnelcat]

I actually thought in 2024 the credit could be applied and deducted at point of sale.

 

[Regenshire]

I actually thought in 2024 the credit could be applied and deducted at point of sale.

It can. If you bought a Model Y this year though, like the OP is considering, you would qualify for a $7500 tax credit when you file your taxes for this tax year. If they wait until 2024 then they could just get it at the point of sale.

 

[cvalue13]

I actually thought in 2024 the credit could be applied and deducted at point of sale.

you can

still factoring in your YE taxes though

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