You might qualify for the Used Clean Vehicle Tax Credit based on your situation. Here are the key requirements:
- The vehicle must be at least 2 model years older than the year of purchase. For a 2024 purchase, the vehicle should be a 2022 model or earlier.
- The purchase price must be $25,000 or less
- Dealer Requirements: The vehicle must be bought from a licensed dealer
- Your modified adjusted gross income (AGI) must be below $150,000 for married couples filing jointly, $112,500 for heads of households, or $75,000 for all other filers
- The vehicle must be bought for personal use, not for resale
- Not be the original owner (When you lease a vehicle, the leasing company is typically considered the original owner.)
- Dealer Paperwork: The dealer must provide specific paperwork at the time of sale, including:
- Seller/Dealer name and taxpayer ID number.
- Buyer's name and taxpayer ID number.
- Maximum credit allowable under IRC 25E for previously owned vehicles.
- Vehicle identification number (VIN).
- Confirmation that the IRS accepted the submission.
To confirm your eligibility, it's best to check with your dealer and ensure all criteria are met.
For more detailed information, you can refer to the IRS guidelines on how to claim a clean vehicle tax credit and TurboTax's understanding the new clean vehicle credit