Are the Clean Vehicle Credit income limits applied incorrectly?

[mixuala]

According to TT, "Individuals can't claim the credit [...] if their MAGI in *either* 2023 or 2022 is more than [xxx]". 
But IRS says "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." 

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

[AnnetteB6]

The income limits should be applied correctly except in the case where your filing status (and thus your income limit) changed from 2022 to 2023.  That limitation is not supported in TurboTax.

If your filing status remained the same for both years and the income limit is not applied correctly, you can consider sharing a diagnostic copy of your tax data file so that we can take a closer look at the situation.  

The diagnostic file will not contain personally identifiable information, only numbers related to your tax forms.  If you would like to provide us with the diagnostic file, follow the instructions below and post the token number along with which version of TurboTax you are using and what states you are filing in a follow-up thread.

Use these steps if you are using TurboTax Online:

• Sign in to your account and be sure you are in your tax return.
• Select Tax Tools in the menu to the left.
• Select Tools.
• Select Share my file with agent.
• A pop-up message will appear, select OK to send the sanitized diagnostic copy to us.
• Post the token number here. 

If you are using a CD/downloaded version of TurboTax, use these steps:

• Select Online at the top of the screen.
• Select Send Tax File to Agent.
• Click OK.
• Post the token number here.

[mixuala]

Filing Status was the same in both 2022 and 2023.

I had to check [x] lease to get TT to do the right thing, but a quick review of Form 8936 shows the correct data.

using TT Deluxe/Mac with CA

NOTE: the send diagnostics is listed under the Help menu, not Online

Token number=1206997

[AnnetteB6]

Reviewing your tax data file, everything seems to be in order and you are able to claim the credit based on your 2022 modified AGI.

The question that you answered 'yes' in order to get the credit to calculate is worded a bit awkwardly, but it is correct to answer 'yes' to that question if you purchased the vehicle for personal use OR for leasing to others, but not for resale.

(Thanks also for the note about sending the diagnostic file when using a Mac -- the instructions are different in that case.)

@mixuala