EV TAX CREDITS - THE DEFINITIVE GUIDE TO TAX CREDITS AND LIABILITY (Not Financial Advice)

[@BeardedTeslaGuy]

**I AM NOT A FINANCIAL ADVISOR AND THIS VIDEO DOES NOT REPRESENT FINANCIAL ADVICE**

[@ashnar844]

Good information. Also please add the income limit. If your adjusted gross income (AGI) should be $150k for filing as single and $300k filing jointly

[@user70331]

Hi! If I am paying quarterly estimate tax, can I reduce my payments to include ev tax credit? Or should I wait until April to file return?

[@zalrawi80]

This is the best video in this regard that I have even watched. Other KZbinrs has confused me when they explained. Your video is clear and deserves a thumps up!!!! Thank you.

[@watercooled8105]

When we asked our tax guy about buying an EV he replied, “Do it.” Since we pay him by the minute, we appreciated his brevity, but wondered how it all worked. You gave us very good information without (me) experiencing any evidence of my eyes glazing-over! Thank you-

[@BeardedTeslaGuy]

Very pleased to hear. Thank you.

[@warrenv.930]

Thank you for the detailed explanation. I was about to adjust my tax withholding but since my tax liability was close to your first example then I believe I am all set. Just ordered model Y and can't wait to reap its benefits! 💰💥

[@BeardedTeslaGuy]

Congrats!

[@ryansherman4556]

You will not get a refund. If you don’t owe any taxes you get nothing

[@doomsday9973]

Thank you for doing this. SO MANY don’t understand what liability is

[@BeardedTeslaGuy]

Cheers

[@Woodcote]

Thank you! I always thought I had to owe $7500 to take advantage of the credit. Usually get a decent refund, so adjusted my W4 to have les tax taken out 😅. I checked my 1040 line 24 and easily have enough tax liability for several EVs 😂. Which is good because my spouse wants an EV now too 😮

[@BeardedTeslaGuy]

So glad I could help!

[@sekmeas]

I did a lot of research on this and you are one of the best easy to understand explanation, compared to the CPA folks in KZbin.

[@BeardedTeslaGuy]

Thanks!

[@BoyangSun]

I lolled at the 420 capital gains and 69 other income. Nice. On a more serious note. This is the ONLY video that clearly explained what my tax liability is and how EV credits can be applied to me. Thank you and subbed.

[@jesses2663]

Thank you. You earned a thumbs up and a subscriber. After speaking with my accountant , what he told me matches 100% with your explanation. Some of the comments (on Reddit) regarding this topic are pretty crazy. Never trust, always verify.

[@BeardedTeslaGuy]

yep! There is so much misinformation out there and because people dont actually know, they perpetuate absolute garbage as fact. I can't tell anyone exactly what their liability is going to be in 2024, but I can show you a good reference to use to get a good idea on what your liability may be. IT IS NOT YOUR REFUND!!!!

[@Heretohelpyousleep]

reddit is becoming a terrible source for information. another blogging source. good job doing real research

[@NJturtlePower]

Best EV tax credit video out there...SAVED! The struggle is real to explain it well and correctly and you nailed it! Posting this to my Tesla groups I watch and moderate! Keep up the good work.....

[@BeardedTeslaGuy]

really appreciate you and thanks a bunch for the Super Thanks!!

[@jmatt98]

Most people don’t have any idea how much they pay for taxes. We should be required to write a check every month to remind everyone. more people will demand more accountability from their government on how their tax dollars are spent.

[@BeardedTeslaGuy]

for sure.

[@sunshine0282]

Very eye opening. In the end, this EV tax credit is for people who are already doing well financially because you gotta earn enough income to have a tax liability equivalent to $7,500 in a fiscal year.

[@adamlamboy6018]

This is awesome. I’ve scoured the depths of the internet looking for this exact video. Well done in some of your very specific numbers too. Don’t think that went unnoticed 😂 Thanks again

[@BeardedTeslaGuy]

Always happy to help, Easter eggs and all!

[@vivianliu1931]

I don't usually leave a comment on KZbin but I got all my questions answered from your video!! thanks a lot for explaining it with such great detail!!

[@BeardedTeslaGuy]

So glad to hear it was helpful!

[@TheTheboss175]

Thanks to your video I was able to get my tax credit this year!

[@BeardedTeslaGuy]

Glad I could help!

[@TreeHugger826]

Good job BTG! I do have an idea that may help many people with taxable IRA's. Withdrawing $$ from it is a taxable event. If you are old enough to take $ out, but you don't want to mess with your retirement, transfer the amount needed to generate $7500 taxliability to a ROTH! It will grow without any future Federal tax liability! Here in Florida, there are lots of folks who can do this. You can calculate exactly the amount you need to transfer. Sound interesting?

[@BeardedTeslaGuy]

Smart

[@larycel]

Thank you. I've been waiting all year for somebody to explain this in a way that I could understand it. Kept hearing all different kinds of things about how this works from other people.

[@BeardedTeslaGuy]

Glad it helped!

[@ChucklesMcChuckleson]

Good video sir. For everyone else, if you're like me and experienced at taxes and adulting - and you're impatient - @11:20 is what you want to see

[@BeardedTeslaGuy]

Cheers!

[@Picklemard]

Glad I watched. I didn’t realize you can use the credit for a new car more than once every three years. Thank you!

[@BeardedTeslaGuy]

Happy to help!

[@wibathome]

Thank you so much for clarifying next years $7500 point of sale discount. I thought I would wait till next year to have it deducted right off the price of the car, even though I don’t have that much in tax liability. It works out the same as this years rules. Whatever you owe is offset by UP TO the 7500, whether it’s at time of purchase or when taxes are filed. Thanks for being so informative.

[@BeardedTeslaGuy]

Cheers

[@BlackJeepConvertible]

Huh, what if I don’t have enough liability to cover the 7500?

[@brucehutcheson5371]

Thank you! Best explanation ever given to help me and others understand this Federal Tax Credit for EV's.

[@theDougAngle]

Thank you for this resource! Great public service you provide.

[@BeardedTeslaGuy]

Any time!

[@jmenzpu]

Finally a very clear explanation with examples. I was scouring this site to find one confirming this was how it worked.

[@BeardedTeslaGuy]

Cheers

[@louiearellano5497]

Thank you so much for this video! It helped explain a lot of confusion I had on how it works this year and how it would work next year. I appreciate this!🙌🏼

[@BeardedTeslaGuy]

You are so welcome!

[@coffeefromhell3206]

Thank you so much for the clarification. Paying the balance yearly is so agonizing that I totally forgot about the actual entire tax amount. Also thanks for the 2024 heads up particularly on point of sale credit to an eligible entity, worth exploring should a second EV opportunity happen.

[@BeardedTeslaGuy]

Cheers

[@maysaeteurn2635]

Thank you for the very detailed and informational breakdown and scenarios of how the EV tax credit works.

[@BeardedTeslaGuy]

You bet!

[@alsouid8350]

Thank you, bearded Tesla guy, for this valuable info. Your channel is the best and is my favorite!

[@BeardedTeslaGuy]

Wow, thanks!

[@smithjhonnysamuel3]

Thank you very much for putting this video out. It saves me a big headache 😅

[@BeardedTeslaGuy]

You're welcome!

[@Veagle1319]

5:04 you answered my question!! My tax liability is 27k after all deduction. We file jointly and don’t make over 300k … I took delivery MYP 2 wks ago and now planning to order M3… total of 15k tax refund from my liability. Thank you!😃

[@BeardedTeslaGuy]

Most welcome, congrats!

[@doomsday9973]

Congrats! We did the same. I feel like I got the M3 (inventory) for a friggen steal compared to insane prices last year!

[@cartoonnetwork57]

The Most educational video on the subject.

[@eclipsegsx96]

Great video I did my math and I would have gotten a tax refund of 1385 last year instead of having to pay 6275!

[@BeardedTeslaGuy]

There you go!

[@brianedwards9240]

I kind of figured this was how it went but was not sure. Thanks

[@justind8125]

This is such important information!!!! Many people do not understand how this works.

[@BeardedTeslaGuy]

Cheers

[@CD-wg6hl]

Thanks so much for making this video! Glad to know that if I want to buy an EV I get all that tax credit back. About damn time, gettin tired of paying Uncle Sam! Make more videos🎉

[@BeardedTeslaGuy]

Cheers

[@maxagliunin566]

I wanted to bring the situation with the annual income. Our last year -2022 was less than 300, but this 2023 most probably will be over. On the IRS website, I found for the ev tax you could claim whatever year was less out of the two last years. So looks like if 2023 is over $300k you are still good to go.

[@BeardedTeslaGuy]

Yes, but speak with tax professional to be 100% sure.

[@tanyakerd6849]

Thank you for explaining this in detail with example. Very helpful! Basically, look at line 24 to see if you qualify. In this case, I don't have any tax liability so I won't be qualify😂

[@BeardedTeslaGuy]

Glad it was helpful!

[@tonydizon7286]

question: if my line 24 on my 2022 Form 1040 shows $8500. Do I still qualify for the $7500 tax credit if I buy a new EV this year? Thank you!

[@jaimemontesdeoca7989]

@tonydizon7286 according to his explanation, you will qualify for the whole 7,500 because your liability is greater than 7,500. That 7,500 will be added to your tax refund.

[@robstravelsadventures]

Thank You so much for explaining this in simple to follow examples. This helps clear up my confusion on how this credit works.

[@BeardedTeslaGuy]

Most welcome

[@cr4zyg047]

EXCELLENT VIDEO 👏👏👏 The clarification around multiple tax credits helped affirm my own understanding.

[@BeardedTeslaGuy]

Glad it was helpful!

[@DeepakKhopade]

Thank you so much for making this video and complex tax topic easy. I know you make videos about everything Tesla as an automobile & tech but touching on this important topic was so kind act from you :). Thanks again.

[@BeardedTeslaGuy]

Glad it was helpful!

[@jmaghribi]

This was an amazing breakdown, keep up the awesome content!

[@BeardedTeslaGuy]

Appreciate it!

[@17736tja]

Best video out there by far. Thank you!

[@BeardedTeslaGuy]

Glad it was helpful!

[@chrisbrzon3917]

Highly recommend John and Jane BUYA HOUSE and itemize next year...and still buy Teslas for each!

[@BeardedTeslaGuy]

Lol

[@mdhaque5484]

Explained very well. Thank you.

[@BeardedTeslaGuy]

Glad it was helpful!

[@nevarosa76]

Very helpful, I am 100% clear now :)

[@xKeilo]

Perfect explanation. Thank you!

[@BeardedTeslaGuy]

You're welcome!

[@ZupE891]

these are some quality tax return numbers

[@BeardedTeslaGuy]

😎

[@MMobin-jy3vn]

Exactly the video I was looking for. Thank you.

[@BeardedTeslaGuy]

Glad it was helpful!

[@TheTheboss175]

Thanks for explaining! This is so confusing topic.

[@BeardedTeslaGuy]

Glad it was helpful!

[@alfietwum-ampofo4557]

Thanks! This was really helpful. I wasn’t sure if there was a limit of the number of EV cars you can buy in one year that would qualify for a tax credit you cleared it for me that it just depends on my total tax liability amount.

[@BeardedTeslaGuy]

Glad it helped!

[@donaldtoombs3676]

Thank You

[@davidzavala337]

It would be just so much easier to just give a rebate on the spot when buying one.

[@BeardedTeslaGuy]

Yea, I completely agree. But why would the government do anything thats "easy"

[@kmaya19]

Awesome Video!!! I wasn't reading it this way but this makes sense!!! Great Job!!!

[@BeardedTeslaGuy]

Glad it was helpful!

[@AltimaNEO]

Well damn, I don't owe enough tax to get the full credit

[@BeardedTeslaGuy]

it happens.

[@futurefirm]

I don't make enough to be taxed enough.

[@chrisbrzon3917]

Wow, that's the first validation I've seen on buying multiple and getting multiple $7,500 rebates. We have plenty of tax liability but still fall just under the $300k married cap.

[@BeardedTeslaGuy]

Yep, no limit on new cars

[@chrisbrzon3917]

Tax liability = taxes withheld on W2 PLUS additional amount paid or MINUS amount of refund upon filing 1040 return. Not just 1040 refunds.

[@BeardedTeslaGuy]

Correct.

[@MDALAMIN-zr8cn]

Thank you 🙏

[@davidmtatta]

This was amazing, finally someone explains it!

[@BeardedTeslaGuy]

Welcome!

[@babehc]

What a fantastic video. Thank you!

[@BeardedTeslaGuy]

Glad it was helpful!

[@Catchmeglidingdirty]

Literally the best video and explanation available. Thank you

[@BeardedTeslaGuy]

Glad you think so!

[@luishoyos3944]

Wow, such a great explanation! Thank you!

[@robertt1336]

Very informative to straighten this out for people. Nice video

[@BeardedTeslaGuy]

Cheers

[@AznInv4zn]

Thank you for the great explanation! Very good and informative video!

[@BeardedTeslaGuy]

Glad it was helpful!

[@johnmcewan879]

Wow. It's sad. Line 24 amounts to $200. I'm not wealthy enough to receive a tax credit on an EV. I imagine a lot of people are like me. I wonder if legislatures realize their EV incentives favor more wealthy people.

[@BeardedTeslaGuy]

Its unfortunate because the lower the income, the more this would help. But, they dont care about you or me honestly

[@rockerdan]

Agree 100%! They should be helping EVERYONE get into a clean EV not just the wealthy.

[@HighValueTargetRacing]

You don't have to be rich/ wealthy to afford an EV. I'm on my second (1st was Hyundai kona electric and now 2020 model 3) and I'm not wealthy (yet)🤷🏾‍♂️

[@rockerdan]

@@HighValueTargetRacing I think you missed the point of this video. Its about the EV tax credit, and we are discussing how this 7500 credit skews only to people who make roughly 60k or above. There are tons of retired people on SSI as one example and they will not be eligable for any Federal EV tax credit. The 2023 model 3 I have now, I will not qualify for unfortunately.

[@OnlyTwoShoes]

Just get a lease. The manufacturer/dealer will usually write off the full tax credit amount from the lease Total. You can then either buy it out at the end of the lease or swap to another if the credit is still ongoing.

[@jasonyurrrr9994]

You are a God sent I subbed thank you man I love you

[@BeardedTeslaGuy]

Glad I could help

[@jestrada614]

THIS IS THE VIDEO I NEEDED!! THANK YOU

[@BeardedTeslaGuy]

Most welcome!

[@MydNitQ]

Nicely detail and straightforward

[@BeardedTeslaGuy]

Cheers

[@DagrtOne]

This was the perfect video! Thank you!!!❤

[@BeardedTeslaGuy]

Most welcome

[@crysisxforce9897]

I wonder given Colorado offers an additional tax credit up to I think $4500-$5000 could be applied in 2024 to the entity as well

[@davidhan268]

As always, thank you for your useful information!

[@BeardedTeslaGuy]

My pleasure!

[@DennisCW]

Love this!!!

[@BeardedTeslaGuy]

Cheers

[@marioguzman3611]

Very helpful video. Thank you so much 👍

[@BeardedTeslaGuy]

Glad it was helpful!

[@adams.5634]

Cannot like this video enough, thank you!!

[@BeardedTeslaGuy]

You're so welcome!

[@billrad9]

Thanks this just confirmed my understanding of the credit. I am hopeful you have a follow up to discuss the income limits and how they work. I am particularly interested in a joint purchase in a case where 1 person may be over the max income and 1 may not.

[@BeardedTeslaGuy]

Check out my previous video on the topic. I cover income in almost all of them

[@jeffpavacic1541]

Excellent explanation, thanks

[@BeardedTeslaGuy]

Glad it was helpful!

[@chaldunalder]

Great video answered a lot of questions.

[@matthewanguelo9485]

You're a legend!

[@BeardedTeslaGuy]

cheers

[@brentmsdn]

Thanks!

[@BeardedTeslaGuy]

Welcome

[@rickpitterle8194]

Very well done.

[@BeardedTeslaGuy]

Glad you liked it!

[@CurieBohr]

People think a credit = a deduction = money back Wrong

[@BeardedTeslaGuy]

Yea and the repeating of that doesn’t help anyone learn how this actually works lol

[@George-fg7rv]

Can you do a video on the 6,000 pound business car tax break that the model x qualifies for please

[@vlsi988]

Thank you! 🙏

[@BeardedTeslaGuy]

You're so welcome!

[@talanslate]

I know I read it more than anyone in congress 😂

[@BeardedTeslaGuy]

and we all know its the truth...

[@_.-.-_]

Did they remove the Non-Refundable Credit provisions in the latest bill? My understanding was that the Qualified Plug-in Electric Drive Motor Vehicle Credit is a non refundable credit. A non refundable credit can reduce your tax liability to 0 (zero), however it cannot result in a refund. What this means is if you qualify for a $350 credit and your tax liability is $200, you will only receive a $200 credit on your return. If your tax liability is zero you would not receive the credit at all, even though you are otherwise eligible for it. As of 10 Jun 2023, the electric vehicle tax credit is nonrefundable, meaning taxpayers who purchase qualifying electric vehicles or plug-in hybrid vehicles can lower their tax liability by the corresponding credit amount. The credit can make a sizable dent in the tax bill, but it won't result in a refund beyond that. I would recheck your source.

[@BeardedTeslaGuy]

um, it is "NON-REFUNDABLE" that is exactly what I am showing and presenting in this whole video...

[@arshdeepnijjar5962]

Really good explanation 👍👍👍

[@BeardedTeslaGuy]

Glad it was helpful!

[@nawill9209]

I don’t know how I ran across your video but I am glad I did. I want to buy a Tesla and trying to figure out how I could get the entire 7500. I am in California so I am trying to figure the credits out here.

[@BeardedTeslaGuy]

lots of other credits available to you out there!

[@Dontneedtoknowdoode]

thank you!

[@BeardedTeslaGuy]

You're welcome!

[@YouWantIceTea]

My mom is buying me a Tesla, she makes way over the agi, I qualify myself as a w-2 employee. How could we manage to acquire that $7500 credit? Is there any situation that we can qualify if I was to somehow buy it?

[@maxyazhbin826]

fantastic explanation

[@teenguyen4124]

Gosh why is it so confusing? All we need to know who qualifies $7500 tax credit

[@BeardedTeslaGuy]

but it was put together by the government, its not allowed to be simple by default

[@lukygoon]

Amazing video!!!

[@BeardedTeslaGuy]

Appreciate you Goon!

[@Charlesbjtown]

Another thing, companies that knock $7500 off the price of the car at the dealer.... that's a rebate, not a tax credit. Example being volkswagen.

[@BeardedTeslaGuy]

Correct but next year this will not be a Rebate, it’ll be a tax credit that is advanced to dealer at time of purchase

[@chrisbrzon3917]

Since it's all based on "tax liability" and these are "tax credits", I don't think that the dreaded AMT comes into play for doing multiple $7,500 credits in a given tax year.

[@BeardedTeslaGuy]

Yea, I am not sure how AMT would impact this. All I know is it is based on AGI for income caps, and final calculated liability after credits and deductions.

[@qman66]

If BTG lived near me I'd hire him to do my taxes and PPF

[@BeardedTeslaGuy]

Uh, not a financial advisor or CPA, this is NOT FINANCIAL ADVICE! The PPF we can discuss if the $$ is good enough 😂😂

[@jorgequirante-diaz350]

If BTG lived near me, I would take him and his family out to dinner. I really appreciate this channel.

[@flolou8496]

Can someone help me with this question? Example: Used Chevy Bolt is advertised at dealership for 10,000: but after the sales tax and other fee's from the dealer the cost is more like 11, 500 out the door: but I also I also wish to purchase an extended warranty adding another 1500.00 to the total price bringing the final price to 13,0000, (if I also add the extended warranty) _________________________________________________ Can I say on the IRS EV used car credit program, that the cost of the car was 13,000? or do I have to use only the 10,000 price of the car, excluding the sales tax and dealer fee's and extended warranty cost ?

[@BMETFerg]

Wouldn't it be best to wait till 2024 to purchase so the 7500 comes off the purchase price and therefor lowering your monthly payment and overall interest paid if taking a loan on the car?

[@leehampton1967]

Do 1099 individuals qualify who’d like to use this for an existing tax liability? My balance 7k, I lose 1k refund due to existing “liability”..thank you for your info.Plan was to replace existing vehicle, purchase 2023 ev.

[@MelvinMyla]

2024 HERE I COME !!! i need that 7500$ up front Point of Sale sent to Elon Musk himself , the only thing is that concerns me is the Ban on foreign entities of concern that goes into effect , 🚨How many cars will lose this credit come 2024??? 🚨 since we have this love hate relationship with china 🇨🇳

[@BeardedTeslaGuy]

lol

[@dudefromlaveenaz]

Neither couple had health insurance, HSA, or 401K's. Yikes. Anyway as a married couple you need to make $66,167.00 of taxable income get the full tax deduction. A single individual needs to make $55,421in taxable income to earn the full credit. $62,723 for head of household.

[@BeardedTeslaGuy]

Yea, the Doe's have a lot of risk in their lives.

[@prudhvivahan1722]

Any Tax credit for Vehicle delivered on August 22nd 2022?

[@BeardedTeslaGuy]

No

[@rivas541]

Very good information. Have you looked into tax credits for small businesses and how that works? Again, thank you very good information.

[@BeardedTeslaGuy]

Have not but I appreciate it

[@archer0181]

Hi there, Great job! I believe what you presented make a lot of sense, however I am finding the information on NerdWallet confusing. NerdWallet states "The credit is nonrefundable; it can lower your tax bill to zero, but it won’t result in a refund." Their calculator is also not showing the return of extra money paid considering the EV tax credit. I have tried that with your numbers. Can you please comment on these.

[@BeardedTeslaGuy]

That is correct, it is non refundable. But what that means is that if you didn't pay or owe that much in taxes, you won't get the excess back as a refund. If you paid over that 7,500, you'd get the full amount back.