@smorgan103 wrote:
My income is above 150 last year and will be this year too.
if my parents owned the vehicle would they have to take out the loan? What would happen if I was the one to pay for it (by giving them the money) and drive it?
The person who claims the credit must be an owner of the vehicle (listed on the title). Being a borrower, co-borrower or co-signer is not relevant. A vehicle can have more than one owner on the title, but if this will be your daily driver, having other people on the title can cause issues with registration and insurance. There may be other implications that are far outside an income tax forum to discuss.
Also, the credit is non-refundable, and can only be paid up to the amount of income tax a person owes. How much income tax do your parents actually pay (what is their tax liability)? Depending on their social security, pensions, and other income, their actual tax might be low enough that they only get no or partial credit.
