I think your question was posted incorrectly. I "think" you meant your example had $50,000 Gross, and $38,000 take-home. The withholdings are not relevant to this issue.
- If your example is single, they would get $ 12,900 as standard deduction.
- That would make taxable income ($50,000 - $12,900 = $37,100)
- The tax on $37,100 is $4,324.
- Even if you got an EV credit of $7,500, you could only use $4,324.
If the example was married filing jointly
- If your example is married, they would get $ 25,800 as standard deduction.
- That would make taxable income ($50,000 - $25,800 = $24,200)
- The tax on $24,200 is $2,490.
- Even if you got an EV credit of $7,500, you could only use $2,490.
Unfortunately, you cannot carry this credit to any other years.
@Artlive87
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