I am writing to seek clarification regarding the eligibility criteria for the electric vehicle (EV) tax credit, particularly concerning specific income parameters and cosigning arrangements.
My understanding is that the current stipulations set an income ceiling of $300,000 for married couples filing jointly, which my parents exceed. However, as an individual filer whose income falls within the qualifying range, I am exploring the possibility of strategically leveraging my eligibility status.
One avenue under consideration involves a cosigning scenario with my father for the purchase. This approach prompts two pivotal questions about the tax credit's applicability:
In a cosigning arrangement, would the income eligibility criteria be based on my individual income, thereby making the purchase eligible for the EV tax credit despite my parents' typically non-qualifying joint income?
Should we meet the eligibility prerequisites, is there a provision allowing my father, as a cosigner, to claim the entirety of the tax credit? The rationale for this inquiry stems from the higher tax liability associated with his income, positioning him to potentially harness the full extent of the tax credit, a scenario less likely in my case due to a comparatively lower tax burden.
Your insights into these matters will be immensely valuable in our decision-making process surrounding this potential investment.
