2022 EV rebate for buying tesla in 2023

[bharad]

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

says you can apply the credit for tesla purchased in 2023 towards 2022 returns. But TT is not allowing me to enter the EV credit information. Can anything be done for this?

[DoninGA]

If the EV vehicle was placed in service in 2023 then the credit has to claimed on the 2023 tax return.

Please take the time to read the instructions for Form 8936 (2022) (Rev. January 2023) Qualified Plug-in Electric Drive Motor Vehicle Credit (Including Qualified Two-Wheeled Plug-in Electric Vehicles and New Clean Vehicles) - https://www.irs.gov/pub/irs-pdf/i8936.pdf

What’s New
Qualified plug-in electric drive motor vehicles. The credit for qualified plug-in electric drive motor vehicles is not available for vehicles placed in service after 2022. See Qualified Plug-in Electric Drive Motor Vehicle, later.
New clean vehicles. The credit for new clean vehicles is available for vehicles placed in service after 2022. See New Clean Vehicle, later.

Phaseout ending after 2022. Toyota, Tesla, and General Motors (GM) vehicles sold after 2022 will no longer be subject to a credit phaseout

[MaryK4]

Can you clarify specifically where you see this?    The new clean vehicle credit may only be claimed to the extent of reported tax due of the taxpayer and cannot be refunded or carried forward.

[bharad]

[LindaS5247 · Accepted solution]

I believe this is saying that you can use your modified AGI from the year before whichever is less to calculate the credit but it is not saying that you can take the credit in the prior year.

Who Qualifies

You may qualify for a credit up to $7,500 under Internal Revenue Code Section 30D if you buy a new, qualified plug-in EV or fuel cell electric vehicle (FCV). The Inflation Reduction Act of 2022 changed the rules for this credit for vehicles purchased from 2023 to 2032.

The credit is available to individuals and their businesses.

To qualify, you must:

• Buy it for your own use, not for resale
• Use it primarily in the U.S.

In addition, your modified adjusted gross income (AGI) may not exceed:

• $300,000 for married couples filing jointly
• $225,000 for heads of households
• $150,000 for all other filers

You can use your modified AGI from the year you take delivery of the vehicle or the year before, whichever is less. If your modified AGI is below the threshold in 1 of the two years, you can claim the credit.

The credit is nonrefundable, so you can't get back more on the credit than you owe in taxes. You can't apply any excess credit to future tax years.

 Qualified plug-in electric drive motor vehicles.

The credit for qualified plug-in electric drive motor vehicles is not available for vehicles placed in service after 2022. See Qualified Plug-in Electric Drive Motor Vehicle, later.

New clean vehicles.

The credit for new clean vehicles is available for vehicles placed in service after 2022. See New Clean Vehicle, later.

[bharad]

Thanks I believe it clarifies the stuff completely.

[abiz2012]

Thanks. I have a follow up question. \

1. Will i get credit on my 2023 tax return if my AGI is higher but lower in 2022?\

2. Based on responses, if i user 2022 taxes to qualify for 2023 EV purchase, do i have to have taxes due in 2022 to claim credit or taxes due in 2023? 

[Critter-3]

Ok ... the credit will be taken on the 2023 return ONLY however the credit on the 2023 return can be calculated using the AGI from the 2022 return  if you do not qualify using the 2023 AGI. 

[NCperson]

to qualify, EITHER the 2022 or 2023 AGI must be below the limit. 

then to use the credit, line 22 of Form 1040 (before the credit is applied) for 2023 must be at least $7500 to get the full value of the credit.

Line 22 in 2023 will be the same as Line 22 in 2022....that is your tax liability.