Can I use my 2023 tax return for the EV tax credit for a 2025 delivery or am I SOL?

Thanks for clarifying. That's pretty much what I thought but was hoping for a loophole. So there's no way to use my 2023 income even though that's what's "on file" right now? Also, I'm curious about your suggestion to reduce MAGI. I contribute to my 401k but not the max amount. How much would maxing it out potentially reduce my MAGI?

No, there's no loophole to use your 2023 income for a vehicle delivered in 2025. The IRS bases eligibility on the tax year of delivery, regardless of what's currently "on file." For 2025, the 401(k) contribution limit is expected to be around $23,000 for those under 50. If you're not maxing out, every additional dollar you contribute reduces your MAGI by a dollar. For example, if you're currently contributing $10,000, increasing to the max would reduce your MAGI by approximately $13,000. Combined with traditional IRA contributions (if you qualify) and HSA contributions (if eligible), you might be able to reduce your MAGI enough to qualify.

That sounds interesting. Does it actually give you specific advice on how to reduce your MAGI? Like does it suggest specific deductions or credits you might qualify for beyond the obvious retirement stuff?

I'm skeptical about these tax tools. How accurate is it compared to just talking to a CPA? And does it account for all the weird EV credit rules like the battery component requirements and stuff?

It actually does give specific suggestions beyond just retirement accounts. It identified that I could make an HSA contribution, deduct student loan interest, and take advantage of business expenses I hadn't considered. It builds a personalized strategy based on your specific situation. For the EV credit specifically, it includes all the current requirements including the battery component and critical minerals thresholds. It even has a database of which vehicles qualify and at what amounts based on the most recent IRS guidance. What impressed me was how it explained everything in plain English while showing exactly how each move affected my bottom line.

How does this service actually work? Like, do they just connect you to the regular IRS line or do they have some special access? Seems too good to be true given how impossible it is to reach the IRS.

Yeah right. There's no way to "skip the line" with the IRS. This sounds like a scam that charges you money for something you could do yourself for free. The IRS is understaffed and overwhelmed - no service is going to magically get you through.

They use a combination of AI and their own call system to navigate the IRS phone tree and wait on hold for you. When they finally reach a human agent, they call you and connect you directly. It's the same IRS line everyone else uses, but they handle the frustrating waiting part. They're actually listed on the IRS's own website as an authorized third-party service. I was skeptical too, but it's completely legitimate and they don't have access to any of your tax info - they just connect the call and then drop off.

That's a good point! I haven't even looked into state incentives. I'm in California - does anyone know if they have income limits too? And do you know if these state incentives are affected by the federal ones at all?

California does have income limits for their Clean Vehicle Rebate Project, but they're higher than the federal limits - $135k for single filers last I checked. However, they offer additional incentives through local air districts and utilities that might not have income caps. The state incentives are completely separate from federal ones, so even if you don't qualify for the federal credit, you could still be eligible for state and local rebates. Check the CA Air Resources Board website and your local utility's EV programs. SoCal Edison and PG&E both have decent rebate programs for charger installation.

I bought a Model Y last month and you're right about the price games. When the tax credit rules changed, Tesla raised prices by almost the exact amount of the credit. But I still think it's worth trying to qualify because at least you get the tax benefit rather than paying it all to Tesla. One thing to know - Tesla now applies the credit as a point-of-sale rebate which means you get it immediately rather than waiting until tax time. Much better for cash flow.

Thanks, that's good to know about the point-of-sale rebate! I was assuming I'd have to wait until filing taxes next year. Did you have to do anything special to get the immediate discount, or do they just apply it automatically if you qualify?