Electric Vehicle Tax Credit

John C3 — Tue, 10 Mar 2026 07:01:24 GMT

I am purchasing an electric vehicle in December. Due to my retirement income not exceeding my standard deduction, I will owe no tax. That makes the credit useless. Can I convert some of my IRA into a Roth IRA and use the tax credit to offset any potential tax due?

Re: Electric Vehicle Tax Credit

KochuK — Wed, 16 Nov 2022 17:55:58 GMT

Hi John C3, thank you for attending the event and post a question.

Yes, you are correct that you need to have tax liability in order to utilize the electric vehicle credit (form 8936). This is a nonrefundable credit, part of Form 1040, Schedule 3 Additional Credits and Payments, line 6f.

Converting some of your Traditional IRA into a Roth IRA is a taxable event and you can use the tax credit to offset any potential tax due.

Attached is the Form 1040, Schedule 3, form 8936 draft forms for your reference.

https://www.irs.gov/pub/irs-dft/f1040--dft.pdf

https://www.irs.gov/pub/irs-dft/f1040s3--dft.pdf

https://www.irs.gov/pub/irs-pdf/f8936.pdf

Hope this helps. Thank you.

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Electric Vehicle Tax Credit

Re: Electric Vehicle Tax Credit