Deductions & credits

Are you sure you are qualifying for this credit.  This is a nonrefundable credit.  That means it will reduce your tax liability by up to $7,500, but if you do not have a tax liability, you will not get the credit.  You can see this on line 16 and 24 of your 1040 Form. 

Also, if your income is above the AGI limits, you would not qualify for the credit. 

If you do have a tax liability (you are not getting a full refund of all of what you paid in or you have to pay in)  and are still not getting the credit then you can double check all of your entries and if you do not see the reason, then you may want to wait until after January 31st to retry as their are multiple updates scheduled for that day. 

Things to remember about this credit:

• It is worth UP to $7,500 depending on the vehicle you purchase
• It is a nonrefundable credit.  This means it will reduce your tax liability by up to $7,500 but will not result in a negative number or a tax refund of money you did not pay in or have withheld.
• The credit cannot be carried forward
• You can use your income for the year you take delivery or the prior year if your income in the previous year was below the threshold if it is above the threshold in the current year. 
• In order to qualify your AGI must be less than:
  • $300,000 if Married Filing Joint
  • $225,000 if Head of Household
  • $150,000 if single or Married Filing Separate
• Vehicle Qualifications are as follows:
  • Vans, SUVS, and Pickup Trucks my have an MSRP of no more than $80,000
  • Other vehicles must have an MSRP of no more than $55,000
    • The MSRP does not include destination charges, options added by the deal (seal coating, extended warranty, etc.) taxes, fees, or manufacturer discounts or incentives. Basically, it does not matter if you strike a good deal on the vehicle if the Manufacturer says it is worth more than the limit, it does not qualify.
  • Final Assembly must be in North America
  • The amount of the credit may be affected by date placed in service
    • January 1, 2023-April 17, 2023 credit of $2,500-$7,500
    • April 18, 2023 credit amount is $3,750 to $7,500
  • Click here to enter your VIN to see if your vehicle qualifies