EV Tax Credit Calculation

[msveinson21]

I plan on buying an EV (Tesla Model Y) in a couple weeks and want to make sure I will get the full $7,500 tax credit. I will use a sample 1040 tax form as an example below:

W2 income - line 1a - $78,975

Taxable income - line 15 - $64,668

Tax - line 16 - $9,831

line 22 - $9,831

Total tax - line 24 - $9,831

Federal tax income withheld - line 25d - $10,888

Refund - line 34 - $1,056

If we use these numbers my refund would increase from $1,056 to $8,556, correct? It all depends if line 22/24 is above $7,500 for me to get the full tax credit, correct? It doesn't matter that I'm already getting a refund even without the EV tax credit, correct?

[DoninGA]

You are correct.  The EV credit reduces the taxes on your taxable income, regardless if you were already receiving a tax refund.  

[NCperson]

@msveinson21 and technically, it's Line 22 that really matters