No....it's your tax liability that the 7500 is applied against.....BEFORE considering any taxes you prepaid thru withholding or estimated payments.
(Grossly calculated)
Like, if you were single...and after deductions you end up with say 90,000 of "taxable" income.
Your initial calculated tax liability would be ~15,500, and the 7500 is applied against that, giving you a tax of $8000.
All your withholding is then compared to the $8000 tax to get whatever refund is involved now.
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It's the people who end up with the initial calculated tax of less than 7500 who don't get the full advantage of the EV credit.
____________*Answers are correct to the best of my knowledge when posted, but should not be considered to be legal or official tax advice.*
