Hello there,
I've been reading multiple EV questions and I'm still unclear and uncertain. My understanding is that the EV credit would be deducted after your tax liability amount.
So for example, this is an actual number on our married - file jointly 2021 tax credit:
Taxable income = $124,143 , 22% tax bracket
Tax Amount = $18,806
Payment = $16,314 ( tax withholding, estimated payment)
Total credits = $2,360
Amount owe = $ 132
So for 2022, let's say if my taxable income are the same.
$18,806 = tax liability
- $7500 = ( EV Credit, assuming we’ll get a vehicle that qualify for this incentives)
$11,306 ( how much I'm responsible to pay for 2022 in taxes total)
If I paid $16,314 in taxes = I would get back 5008 in refunds?
Is my understand correctly?
Thank You so much for your help !
