Can you clarify, please? Because these credits are dollar to dollar adjustments to tax due, non-refundable. If your taxable income is less than your credits (battery and EV), you can't get back more on the credit than you owe in taxes. No carry forwards for EV. It'll only credit you up to your taxable amount for the 2022 tax year. If your EV credit covers your entire tax bill, you will receive back whatever taxes you paid, in most circumstances. If the battery is a home energy upgrade it'll carry forward up to the qualified amount of time from when you purchased it and placed it into service. Check your tax refund, and the amount you paid in taxes, they maybe very similar if not exact to what your refund is, unless you qualify for other refundable credits.
For example, you had one job, a W2, and taxes paid were $6,000 Box 2 of W2. Your actual tax bill is 5,000 based on income, after all deductions. Since you have a credit up to $7,500 it'll pay the $5,000 due and refund you $6,000 of what you paid and only use $5,000 of the credit and $2,500 will be lost, under basic assumptions and no tax liability for other income.
Keep in mind:
- EV credit is for that tax year only, doesn't carry forward
- Home Energy Credits do carry forward for a period of time depending on when you got it
- It'll erase qualified home energy upgrades credits if your EV credit covers your entire tax bill, and carry forward if applicable.
@david-vazquez99
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