Hi, I recently purchased an electric vehicle with the expectation that I will receive up to +-$7,500 in federal rebates when I file my taxes. However, I have already made 2 quarterly payments to the IRS for my 2023 taxes. Will that potentially limit the amount of rebates I am eligible for, or can I carry forward my 'prepaid taxes' to next year?
Thanks in advance,
Marie
It's not whether you get a refund or a tax due. And the withholding or estimated payments doesn't matter. It's if you have a tax liability on your income. Look at your 1040 line 22 for total tax. So as long as Line 22 is more than $7500 (before applying the credit), you'll get the whole credit back.
The EV credit only reduces the tax liability on 1040 line 22 to zero. Then you will get back all your withholding and any estimated payments. But it doesn't reduce any other taxes on line 23 like self employment tax.
Thanks for your question, @Lilbean20 ! Making estimated payments will not limit the amount of rebates you're eligible for.