The Federal EV Tax Credit is a nonrefundable credit. There are also income limitations. Single individuals or married filing separately have an $150,000 income limitation (MAGI). MAGI is very similar to adjusted gross income, but there are some differences. The credit is called nonrefundable, because you can not use the credit if your tax liability was Zero. Also, when I mention tax liability it does not mean what you owe when you file the return. Tax liability is the tax computed in your return based on your income and deductions and it does not take into account any amount withheld or paid in estimates. For example, the return may show a tax liability of $10,000, but your employer withheld $11,000 and you are getting a refund of $1,000 before applying the tax credit. The tax was still $10,000 and you would be able to get the credit as long as all the other requirements were met, such as income, purchase price, etc.
