2 Rivians - Tax Credit Question

[rajasaab]

Tax Credit Question : So I have an R1T (took delivery in 2022) and will claim the credit for it this year. ALL GOOD.
Have an R1S on order slated to be delivered this summer and I signed the contract last year.
According to Rivian's guidance I will have to ammend my 2022 Tax Return and claim the R1S credit once it gets delivered this year.
My question is -- the EV credit is a 'credit' which means i need to owe taxes to be credited the amount. So technically with the R1T and R1S both claimed in 2022 i need to owe 15K to be able to get the full amounts on both. Obviously I will need to pay atleast 7.5K to the IRS as owed taxes and then when I get the R1S and ammend by 2022 return IRS will (hopefully) credit me the amount.
Am i understanding this correctly?

Sponsored

 

[emoore]

Yes you will need a total tax liability of $15k (if you can take the R1S as delivered in 2022).

 

[rajasaab]

Yes you will need a total tax liability of $15k (if you can take the R1S as delivered in 2022).

Thx emoore! So basically i will pay atleast $7.5K now and then when i ammend my 2022 return i should get that back.

 

[Wallace]

Also to be clear the tax liability is in total for the year. It doesn't matter whether you were over or under paid at the time you file your taxes, just that over the course of the year your total tax liability was greater than the credit.

 

[Djrude10]

Also to be clear the tax liability is in total for the year. It doesn't matter whether you were over or under paid at the time you file your taxes, just that over the course of the year your total tax liability was greater than the credit.

Correct! If you can afford a Rivian I would think you would cross that hurdle on tax liability. When you amend your return you will get the $7,500 refunded (on second vehicle) given that you already settled up on what you owed on the original return (w/R1T).

 

[Dave711]

To Rivian: Will you change the battery source material and assemble it in America so that your Rivian may qualify for the $7,500 rebate? What do you think, could we wait to take delivery until Rivian qualifies for a full $7,500 rebate?

Sponsored