Can my wife claim the federal used ev tax credits in 2024 if I am claiming it for 2023?

[rocwhite]

We are married filing jointly and interested in buying a second used EV under my wife's name. Will we be able to claim the federal used EV credit again if I claim it for 2023?

The IRS says "To qualify, you must Not have claimed another used clean vehicle credit in the 3 years before the purchase date". Its FAQ says "The taxpayer has not been allowed another Previously Owned Clean Vehicle Credit in the three-year period prior to the date the previously owned clean vehicle is purchased."

I guess my question is: for the purpose of used EV tax credits, are husband and wife considered a single "you" / "taxpayer"?

[AnnetteB6]

Looking at the Form 8936 and the associated instructions for that form, there is not a way to designate that either the taxpayer or spouse purchased the vehicle for which the credit is being claimed.  Therefore, if you are filing a joint tax return, then the two of you together are considered 'you' in the instructions referencing not claiming another credit in the three years prior to the purchase.  You would not be able to claim the credit two years in a row.

[rocwhite]

Thanks for looking into this. Just to clarify, the 2023 version of Form 8936 does seem to have a place to indicate name (first row, "Name(s) shown on return"), unless I'm understanding this incorrectly?

Also, according to a reddit reply: "The law for the tax credit, 26 USC Section 25E(c)(3), which has the once every 3-year limit, uses the word "individual":

(3) Qualified buyer
The term "qualified buyer" means, with respect to a sale of a motor vehicle, a taxpayer-
(A) who is an individual,
(B) who purchases such vehicle for use and not for resale,
(C) with respect to whom no deduction is allowable with respect to another taxpayer under section 151, and
(D) who has not been allowed a credit under this section for any sale during the 3-year period ending on the date of the sale of such vehicle."

[DMarkM1]

Yes, the names at the top of the form 8936 transfer from the form 1040.  The names will be the joint filers. This does not affect the credit calculation.  Each of the two people on the joint return have received a credit under the applicable IRS section if the credit was claimed on the joint return. The credit is not separated by social security number on the tax return.

[rocwhite]

Didn't mean to doubt anyone, but in case this is helpful to others: this reply from reddit made a quite convincing case that both spouses of a jointly filed return should each be able to claim a used EV credit within a 3-year period..