The EV tax credit is a Non Refundable credit. This means: The credit is nonrefundable, so you can't get back more on the credit than you owe in taxes. You can't apply any excess credit to future tax years.
I suggest that you look at your 2022 tax return to see if you will get a credit.
Look at line 15. That is your taxable income. A lot of times when someone just has Social Security, then they do not have any taxable income.
Look at line 16, this is your tax on any taxable income. If there is some tax, then you might get part or all of the $7500 credit. For example, if you tax is $1000, then your credit might be $1000 of the $7500. I say might because there could be other credits that lower your tax too. Again, I would look at your tax return for 2022 to see if your tax on line 16 was lowered in any way.
https://www.irs.gov/credits-deductions/credits-for-new-clean-vehicles-purchased-in-2023-or-after
This link will take you to all of the information and limits of the EV credit. If you are buying an EV in 2024, remember that the credit could change again. Check back to the IRS.gov web page to see any changes.
If you end up buying an EV, I hope you love it as much as I love mine!!!
KatherineS63
