2024 and the $4000 Used EV tax credit getting more interesting

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Have a question about the EV Used Tax Rebate. I purchased a Tesla under 25k and got the $4k taken off at the dealer. However, I found out the requirement for my income to be 75k or lower since I am a single filer. What does this mean since the purchase already went through? Do I have to pay the 4k back?
 
Jamie814b said:
Have a question about the EV Used Tax Rebate. I purchased a Tesla under 25k and got the $4k taken off at the dealer. However, I found out the requirement for my income to be 75k or lower since I am a single filer. What does this mean since the purchase already went through? Do I have to pay the 4k back?
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Yes
 
Jamie814b said:
Have a question about the EV Used Tax Rebate. I purchased a Tesla under 25k and got the $4k taken off at the dealer. However, I found out the requirement for my income to be 75k or lower since I am a single filer. What does this mean since the purchase already went through? Do I have to pay the 4k back?
Click to expand...
I'm a bit surprised that this wasn't caught when you purchased the car, since you have to attest by signing a piece of paper that lists all of the requirements.

Did the dealership not go over this piece of paper listing the requirements to make sure your qualified?
 
If you are a head of household the income limit is $112,500 all others are $75,000, or $150,000 for joint filing
 
Mark W said:
Hi all,

The US $4000 used EV tax credit has been around for a while now, but 2024 makes the credit much more appealing for a few reasons. Before I get into that, for those that are not familiar, a quick summary of the credit:
  • Income limits, $75,000 for individuals, $150,000 married filing jointly
  • Car must be bought from a dealer
  • Price must be $25,000 or less
  • Model year of the car must be at least 2 years old
  • Car is only eligible once in it's lifetime. It can not have been previously sold to an eligible buyer after 08/16/2022.*
Complete details are here https://www.irs.gov/credits-deductions/used-clean-vehicle-credit

So, 2024 brings two things to make these credits better:
  1. The tax credit is now a Point of Sale credit if you buy from a dealer that participates. The dealer takes the $4,000 (or 30%, whichever is less) off the price of the car and gets reimbursed by the IRS.
  2. Many more used EVs are now coming down to the $25,000 price level. Previously, it was mainly Leafs, Bolts, and i3s. Now, used EV prices are continue to fall, and cars like Tesla M3, ID4, Mach-e, are getting to the magic pricepoint.
Are any of you following this? Have you been searching for EVs under $25,000? I read an article on Inside EVs that a large number of dealers have enrolled in the Point of Sale program, but I think most of those dealers are thinking of the $7,500 new car credit. I have not seen any indication from any dealer that they are even aware of the used credit.

Two questions I have:
  1. *There has been some confusion about multi-owner cars and whether they qualify. You hear some people saying oh, this car had two previous owners, it doesn't qualify. I don't think that's the case, I think it's only for previous sales after 8/12/22.
  2. The rules state that you can only get the used credit once every three years. I think this is by INDIVIDUAL, right? If you file jointly, I think the restriction isn't by tax return, but by person?
Let me know your thoughts on all of this and whether you're planning on trying to purchase a used EV and claim this credit. Thanks.
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If I buy a qualified used EV before the end of 2024 (it's 12/3 today!) and my AGI was 81,000 on my 2023 tax return and 69,000 on my 2022 tax return, do I qualify? When they say the year you purchase or the year before for your AGI, I don't know if they mean tax return year or calendar year. Thanks for any info you can give.
 
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