Hi,
Here's some info:
Credits for Electric Vehicle (EV)
The amount is the amount of the credit, up to $7,500, can reduce your income taxes to zero. Look at your withholding year to date and add the 7,500 amount to that. Compare the result to your estimated 2022 total income taxes. If the withholding plus the credit amount are over your estimated 2022 taxes, you can safely continue no withholding until 12/31/2022. If it is not sufficient to cover your total income tax for 2022, complete another W-4 with your employer to start withholding again until the end of 2022. You can also make estimated payments for 2022.
To estimate your 2022 taxes, use this link https://turbotax.intuit.com/tax-tools/calculators/taxcaster/
The Turbo Taxcaster, Tax Calculator 2022 will help you do your estimated taxes.It is important to note that the EV tax credits are nonrefundable. This means the credits can only be applied to the taxes you owe in a given year. If you received more in credits than you owe in taxes, you will not receive the difference. The credits do not roll over, either.
Note: Due to your purchase date, your credit is determined under the old law (still up to $7,500). This IRS page explains more.
Hope this helps. Please cheer below if it does!
Best,
Karen
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