EV Tax Credit -

[krslnguyen]

Hello there,

I've been reading multiple EV questions and I'm still unclear and uncertain.  My understanding is that the EV credit would be deducted after your tax liability amount. 

So for example, this is an actual number on our married - file jointly 2021 tax credit:

Taxable income = $124,143 , 22% tax bracket

Tax Amount = $18,806

Payment = $16,314 ( tax withholding, estimated payment)

Total credits = $2,360

Amount owe = $ 132

So for 2022, let's say if my taxable income are the same. 

$18,806  = tax liability 

- $7500 = ( EV Credit, assuming we’ll get a vehicle that qualify for this incentives)

$11,306  ( how much I'm responsible to pay for 2022 in taxes total)

If I paid  $16,314 in taxes = I would get back 5008 in refunds? 

Is my understand correctly?

Thank You so much for your help !

[Mike9241 · Accepted solution]

your math appears correct. but we have no way of knowing if your vehicle qualifies for the full $7500 credit.

see this link

https://www.irs.gov/credits-deductions/credits-for-new-electric-vehicles-purchased-in-2022-or-before 

[krslnguyen]

Thanks so much for your confirmation, we’re looking at either Leaf or Bolt , so hoping for the $7500 incentives!