I bought an EV in 2019 gets a $7500 tax credit. Standard Deduct and owe $6400 or Itemized Deduct and owe $7190. How should I use the $7500 EV Tax Credit?

[dmertz]

If the amounts that you indicated that you owe are the amounts before claiming the EV tax credit, under these circumstances it apparently makes no difference on your federal tax return whether you use the standard deduction or itemize.  If the indicated amounts are after claiming the EV tax credit, you pay $790 less federal taxes by taking the standard deduction.

Either way, whether or not you itemize on your federal tax return could make a difference on your state tax return if you live in a state that only allows you to itemize on your state tax return if you itemize on your federal tax return.  If itemizing on your federal tax return allows your state tax liability to be lower by more than any additional amount that you owe on your federal tax return by itemizing, you have a net savings by itemizing.

[luftdog]

Thanks very much!

[JohnW222]

dmertz makes excellent points.  I just thought I'd add, since this is the thought that came to my mind, that any unused portion of the credit cannot carry forward or back to other tax years, so that wouldn't have been a consideration for you, either.