I've found some clarifications from IRS which states that the income level should be compared against the filing status of the corresponding year (preceding or current). i.e. we should be able to specify the filing status of for the previous year, if different from the current filing status.
Is there something TurboTax can help address? It seems like a number of people is blocked or incorrectly disqualified for this credit.
Q1. Could my income level prevent me from taking the New Clean Vehicle Credit? (updated Oct. 6, 2023) A1.
Yes. You may not claim the credit if your modified adjusted gross income (AGI) exceeds certain thresholds. This limitation is based on the lesser of your modified AGI for the yearthat the new clean vehicle was placed in service orforthe preceding year. The relevant modified AGI thresholds are as follows: • Married filing jointly or filing as a qualifying surviving spouse or a qualifying widow(er) - $300,000 • Head of household - $225,000 • All other taxpayers - $150,000 Your modified AGI is the amount from line 11 of your Form 1040 plus: • Any amount on line 45 or line 50 of Form 2555, Foreign Earned Income. • Any amount excluded from gross income because it was received from sources in Puerto Rico or American Samoa. If your filing status changes between the preceding year and the current year, you may claim the New Clean Vehicle Credit if your modified AGI is less than or equal to the threshold applicable to your filing status for in the preceding year or current year.
https://www.irs.gov/pub/taxpros/fs-2023-29.pdf#page=5
