I bought a new car this year and i want to add it to my tax return how would i do that

[Vanessa A]

Was it a gas engine or was it an EV?  If it was a regular gas car, then it is not something you would add to your return as you do not get credits or deductions for buying a new vehicle in general. 

If it was an EV car then you would enter it by selecting Deductions and Credits>>Energy Efficient Vehicles.

If you buy an EV that is on this list for the credit of new vehicles and you qualify for the credit, you will get credit for it on your 2023 taxes filed in 2024.  In order to receive credit for the EV on your 2023 return, you would need to have bought it during 2023. 

Things to remember about this credit:

• It is worth UP to $7,500 depending on the vehicle you purchase
• It is a nonrefundable credit.  This means it will reduce your tax liability by up to $7,500 but will not result in a negative number or a tax refund of money you did not pay in or have withheld.
• The credit cannot be carried forward
• You can use your income for the year you take delivery or the prior year if your income in the previous year was below the threshold if it is above the threshold in the current year. 
• In order to qualify your AGI must be less than:
  • $300,000 if Married Filing Joint
  • $225,000 if Head of Household
  • $150,000 if single or Married Filing Separate
• Vehicle Qualifications are as follows:
  • Vans, SUVS, and Pickup Trucks my have an MSRP of no more than $80,000
  • Other vehicles must have an MSRP of no more than $55,000
    • The MSRP does not include destination charges, options added by the deal (seal coating, extended warranty, etc.) taxes, fees, or manufacturer discounts or incentives. Basically, it does not matter if you strike a good deal on the vehicle if the Manufacturer says it is worth more than the limit, it does not qualify.
  • Final Assembly must be in North America
  • The amount of the credit may be affected by date placed in service
    • January 1, 2023-April 17, 2023 credit of $2,500-$7,500
    • April 18, 2023 credit amount is $3,750 to $7,500
  • Click here to enter your VIN to see if your vehicle qualifies

There is also a credit for used EV's but your AGI must be half of what is listed above for your filing status.  Here is a link to more details on the credit for used EV's. This credit is also a nonrefundable credit with a maximum credit of $4,000 depending on the vehicle. As you answer the questions for the vehicle you purchased, if your vehicle qualifies, TurboTax will complete form 8936 with your return.