Tax credit EV 2023. What specific items do you suggest checking?

[Fernaer6805]

Evaluating purchase of a EV to get tax credit where they suggest to talk with tax advisor. What specific items do you suggest to check?

[sccas]

Great question. The first thing I recommend if you "pay enough"  in taxes to see if you benefit. I would check your 1040 and specifically look for line that reads "TAX" (on the 2022 form it will be line 16 on Form 1040)  you can look at prior years especially if your income hasn't shifted much.

Next, I would look at the IRS website to see which car would give you the most benefit.  Remember it is a credit  not a refund and it can only reduce your taxes if you owe in that year.  I hope this makes sense 🙂

https://www.irs.gov/credits-deductions/credits-for-new-clean-vehicles-purchased-in-2023-or-after

[TeriH]

Great question re EV credits, and great to ask them ahead of time.  There are a lot of factors to consider and one of them is your income.  

Some other qualifications:

• Used car must be plug-in electric or fuel cell with at least 7 kilowatt hours of battery capacity.
• Only qualifies for the first transfer of a vehicle.
• Purchase price of car must be $25,000 or less.
• Car model must be at least two years old.
• Vehicle must weigh less than 14,000 pounds.
• Credit can only be claimed once every three years. 

I’m including references to two easy to read articles that will talk through the various items to consider.

https://www.nerdwallet.com/article/taxes/ev-tax-credit-electric-vehicle-tax-credit

https://ttlc.intuit.com/turbotax-support/en-us/help-article/tax-credits-deductions/electric-car-tax-...

Best,
teri