If my filing status change for tax year 2023, what happens to the 2023 EV 7,500 credit?

[garminfoil]

Hi turbotax community!

I'm currently qualified for the $7,500 EV credit based on my 2022 AGI for married filed jointly status. The 2022 AGI is between 150K and 300K.  So let's say I go ahead and place an order for an EV and take delivery in March 2023.

I strongly suspect my filing status will change in 2024: either married filed separately or individual for tax year 2023. Would I still qualify for this credit with the EV delivered in March? The IRS literature is not clear. I called the IRS and the agent is clueless - upon consulting their supervisor, the answer is there is no current guideline on this. Based on your experience with similar tax incentive in prior year, normally would this filing status change invalidate the credit that I am currently qualified for?

Thanks in advance!

[Texas Roger]

If you are unmarried at the end of 2023 you must file a single or married filing separately tax return for tax year 2023. With either of those filing statuses your adjusted gross income limit is $150,000 or less for you to qualify for the EV credit. 

[JohnB5677]

You probably will qualify in 2023.  Marital status is of no consequence.  The IRS also says: " You can use your modified AGI from the year you take delivery of the vehicle or the year before, whichever is less. If your modified AGI is below the threshold in one of the two years, you can claim the credit."  The AGI limit will be $150,000 if you file single or separate.  New Clean Vehicles Purchased in 2023

[garminfoil]

Thank you. To clarify, I'm the primary earner so my 2023 AGI will still be above 150K if I file separately or as an individual in 2024.

Is the law intentionally vague or do you guys read it as quite straight forward? At the time of making a decision to get an EV, I am clearly qualified as married filed jointly in 2022 because my GTI is below 300K so I would like to take advantage of this credit.  But as my personal and hence the filing situation might change beyond my control in the next 11 months, I might lose the eligibility for the credit because I now make more than 150K but have to file separately or individually. 

[Texas Roger]

To me it is very clear that the income limit is based on your filing status for the tax year. If you are no longer married at year end, your filing status cannot be married filing jointly and thus the lower income limit.