Filing status change for EV Tax credit

[tktax1]

My wife and I purchased a new model Y in 2023 and we are both on the title as owners.

We filed our taxes separately for year 2022 and in 2022, she qualified for the tax credit and I did not.

Neither of us qualify for year 2023 based on income thresholds.

We could also file separately for 2023, but my name and ssn are on the IRA Clean Vehicle Credit Report that Tesla sends to the IRS regarding the new vehicle purchase, and not my wifes.

For our 2023 tax filing, if we file jointly, can we(she) qualify using her 2022 eligibility where we filed seperatly? 

[tktax1]

To clarify, we are both on the title at time of purchase in 2023. 

I guess the question boils down to, if my name is on the IRA form that the dealer (tesla) sends to the IRS, can my wife claim the tax credit using her 2022 year, as long as we file jointly for 2023.

Or will I need Tesla to change the name on that form, if its even possible. It says the deadline is Jan 15th 2024 for vehicles purchased in 2023.

[KrisD15]

Have them change the form.

According to the IRS:

"A seller must provide the following information on a report to the taxpayer and to the IRS (“seller report” or “time of sale report”):

• Name and taxpayer identification number of the seller
• Name and taxpayer identification number of the taxpayer (only one taxpayer may be listed on the seller report; in the event of multiple owners, only the taxpayer that intends to claim the credit should be listed)
• Vehicle identification number (VIN) of the new clean vehicle
• Battery capacity of the new clean vehicle
• Verification that the taxpayer is the original user of the new clean vehicle
• The date of the sale and the sale price of the vehicle
• Maximum credit allowable for the new clean vehicle being sold
• For sales after December 31, 2023, the amount of any transfer credit applied to the purchase
• A declaration under penalties of perjury from the seller"

IRS FAQ

TurboTax similar question and answer 

[tktax1]

Thanks for the response Kris.

I've reached out to Tesla to see if they can change the form.

Based on this line from the IRS website (https://www.irs.gov/newsroom/topic-b-frequently-asked-questions-about-income-and-price-limitations-f...)

"If your filing status changes between the preceding year and the current year, you may claim the new clean vehicle credit if your modified AGI is less than or equal to the threshold applicable to your filing status for in the preceding year or current year."

I'm interpreting this in my case as, if your filing status changed from MFS 2022 to MFJ 2023, you may claim the credit if your MFS AGI in year 2022 is less than the threshold of 150k for MFS. So if my wife's MFS AGI in 2022 is under 150k, she can claim the credit when we file jointly in 2023.

Is that correct? I'm stuck on the "modified AGI" line, If her AGI is less than 150k in 2022, will that be modified in any way if we MFJ in 2023?

[RobertB4444]

No, you can't.  That says that your AGI for the current year can be used with the filing status of the previous year.  Not the AGI.  You need to get Tesla to change the form.

@tktax1