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Deductions & credits
@dolphine1234 Did you file your 2022 tax return as Married Filing Jointly and if so was your 2022 AGI under the limit for taking the EV credit?
Go to this IRS website and note the last paragraph under Q1 - https://www.irs.gov/newsroom/topic-b-frequently-asked-questions-about-income-and-price-limitations-f...
If your filing status changes between the preceding year and the current year, you may claim the new clean vehicle credit if your modified AGI is less than or equal to the threshold applicable to your filing status for in the preceding year or current year.
Otherwise filing Separately will change several advantages you receive when filing Jointly which may or may not affect your decision.
See this TurboTax support FAQ for filing jointly versus separately - https://ttlc.intuit.com/turbotax-support/en-us/help-article/taxation/better-married-couple-file-join...
When you file separately, your tax rate is higher and you won't be able to claim:
- Education benefits
- Earned Income Credit (EIC)
- Child and Dependent Care Credit (usually)
- Adoption Credit (usually)
- The standard deduction if your spouse is claiming itemized deductions
- The full benefit for itemized deductions, the Child Tax Credit, and capital losses (you'll get only half compared to married filing jointly)
If you file separately and live in Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, or Wisconsin, you have to deal with community property allocations and adjustments, which adds extra work and complexity to your taxes.