yes, it does get confusing.
The credit has NOTHING to do with your withholding.
Take a look at the Form 1040. (the 2023 form is going to be almost exactly the same)
https://www.irs.gov/pub/irs-pdf/f1040.pdf
the EV credit reduces your tax liability - that is line 22. That means that to take full advantage of the $7500 tax credit, Line 22 must be at least $7500 BEFORE applying the credit. Look at your 2022 tax return to see that,
Your withholding and any estimated payments are applied beginning on Line 25 so have no impact on the tax credit. This is where folks get confused. They think that line 34 has to be at least $7500 to get the credit, Not True.
Line 22 is what you owe (your "tax liability"); Lines 25-34 is how you pay what you owe.
See the difference?
ps if it plays out like 2022, you are getting $6500 back
