We have submitted our Federal and State tax returns, but we were sent a correction for our state return. The issue is our plug-in hybrid car we purchased. We put the downpayment on the car in December of 2021 and signed the contract, but did not take ownership until January 2022. Since we obtained the car in 2022 and obtained the car loan in that year, we did not claim the car for the electric credit in our 2021 taxes and the dealership recommended that we wait to claim it.
The federal return was accepted with the electric car included in our 2022 taxes, but the state was not, saying that it was purchased in 2021. The amount is not insubstantial, so it is worth correcting.
We could:
- try to contact Colorado to defend why it should be approved for 2022
- file a correction to our 2021 state taxes to include the car for that year
#2 seems to be the path of least resistance, but then I wonder if I'd have to amend our 2022 federal return since correcting our state return would have to be reported right?
Any advice on the best way to proceed?
