Official IRS Guidance on Tax Credit Until 1/1/23

[dbsb3233]

As I understand fed tax credits they can only be credited towards your liability in the tax year you claim it.

Yes. Or more clearly... the tax year that you buy the car (i.e. "put it in service", which is effectively the date of the bill of sale and when you take delivery). So if your bill of sale is dated in 2022, you would claim the credit on your 2022 taxes (filed between Jan-Apr next year).

He appeared to be referencing last year's tax liability, but presumably he'll still be well above $7500 for this year too.

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[Mrn]

Does anyone know if AZ has a max new car non-refundable deposit?

 

[khayes9999]

Oh my, with those numbers you'd have WAY more than enough total tax liability to claim the full $7500 credit. As others have said, what you've paid in (through paycheck withholding or estimated tax payments) is irrelevant. The credit has nothing to do with what you've already paid in, or what your balance due or refund is. What matters is your TOTAL TAX (Form 1040 Line 24). The $7500 subtracts directly from that. If your TOTAL TAX is over $7500, you get the full credit. If the TOTAL TAX is below $7500, you get that much credit to take it to zero.

Understood.... thank you!

 

[nvabill]

There actually was a markup, $3k - which I felt was OK given the current market situation and ability to get the $7.5k incentive I won't be eligible for next year.

A few of the dealerships I talked to were going all the way to $15k ADM, most were between $5k and $10k. It's crazy out there!

Which is actually $5000 because had you ordered the same car you would get it for $2000 less than msrp due to price protection. That's the amount off sticker I am getting due to the price increase this year,

 

[tmrqs]

Which is actually $5000 because had you ordered the same car you would get it for $2000 less than msrp due to price protection. That's the amount off sticker I am getting due to the price increase this year,

Ah good point.

However I only decided I wanted (neeeeeded) a Mach-e like a week ago, so I guess that’s the “late to the game” price to pay.

Found it on Thursday, picked it up on Saturday, put 300 miles on it already. Loving it!

 

[nvabill]

Ah good point.

However I only decided I wanted (neeeeeded) a Mach-e like a week ago, so I guess that’s the “late to the game” price to pay.

Found it on Thursday, picked it up on Saturday, put 300 miles on it already. Loving it

Good deal, looking forward to getting mine, came in last week with damage so it’s in the body shop.

 

[Hutch44]

Not likely. The EPA’s classification of the MME was already changed to SUV for the 2022 model year.

Well, damn bad luck for 2023s it seems. They didn't take the inclusive approach.

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