EV Tax Credit if Purchased After 12/31/20?

[luisroffers]

Forgive my ignorance, but based on a very cursory Google search, I can't quite find an obvious answer. A big part of the reason I was keen on the MME versus Model Y was that availability of the $7500 Federal Incentive. I know, as a general rule of thumb, I would have need to have taken delivery of the MME by 12/31/20 in order to have it qualify on my 2020 Tax Return and get the benefit around Feb/Mar 2021 when I file, but if my production date isn't until late December or even worse January, will that mean I have to claim it on 2021 taxes and wait a whole year (effectively paying the full $700-$800+) to get the subsidy?

Again, sorry if this is a relatively obvious answer, but I'm trying to get insight from folks who have been closer to the EV market for quite some time as this is my first foray into this realm. Thanks for any info you guys can provide!

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[luisroffers]

I was reading that thread; but it is regarding the availability of the tax credit based on production; my question is more about timing and whether I'm able to claim it on my 2020 return versus my 2021 return based on MME delivery...sorry if that wasn't clear.

 

[JCHLi]

Yes, basically you'll need to claim it on your 2021 taxes. There have been several options discussed here in other threads, but a quick rundown:

Adjust you 2021 tax withholding so you don't "wait"
Do a Roth conversion that would equate to a $7500 tax bill to take advantage of the credit immediately.
As always talk to a tax expert for actual advice

 

[luisroffers]

Yes, basically you'll need to claim it on your 2021 taxes. There have been several options discussed here in other threads, but a quick rundown:

Adjust you 2021 tax withholding so you don't "wait"
Do a Roth conversion that would equate to a $7500 tax bill to take advantage of the credit immediately.
As always talk to a tax expert for actual advice

Thanks!

 

[luisroffers]

Thanks!

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