@Artlive87 wrote:
Thank you for the real calculation example. This tax Credit is like a scam) Not much benefit from it if you are married.
The EV credit is a wealth transfer from the general taxpayer to high-income taxpayers who can afford to own and maintain 2 or 3 cars. I'd love an EV but I do too much extended driving so it would have to be my second car, meaning I have to be wealthy enough to n to only buy it, but pay maintenance and insurance on two cars.
The trick (if you are planning for the future) is to find a useful way of temporarily increasing your income. For example, if you have retirement funds in a traditional pre-tax 401k, 403b or IRA, you could do a Roth IRA conversion to use up the credit. If you get a $7500 credit but can only use $2500 of is, you could convert $25,000 of your retirement funds to a Roth account. Future withdrawals will be tax-free, and there won't be any tax on the conversion because of the EV credit.
Or, you could take a bonus, deferred compensation, or sell some stocks at a large gain to lock in the gain tax-free.
