Married Couple and 2024 Used EV Tax Credit

[taxidermy]

My spouse and I, who file our taxes together in the US, have already purchased a pre-owned electric vehicle in 2024. The purchase was made under my name, and the dealership handled the necessary documentation for us to apply for the tax credit next tax filing season, staying within the under $25k sales price eligibility.

I'm now contemplating acquiring another used EV and wonder if making the purchase in my spouse's name would allow us to claim the credit for both vehicles. I've reviewed the guidelines on the IRS website regarding the used clean vehicle credit, which specify the term "individual" but also reference joint income thresholds.

Could someone with accounting expertise or superior interpretation skills offer insight into this matter?

Appreciate any guidance!

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As an additional point of inquiry:

Regarding one of the EVs, the credit would be claimed at the end of the tax year, while for the other, it would be at the point of sale. If we end up not owing any taxes at the year's end, does this mean we could receive an extra $4k from the tax credit, or is it contingent upon having a tax liability?

Thank you!

[Vanessa A]

No, you would not be able to claim 2 Used EV credits as a married couple filing a joint return.  Basically, when it says individual, it is more or less referring to the "owners" of the return.  So, it would be one credit per return, not per person.

The way around that would be to file separate returns.  However, if you file separate returns, you may lose other tax credits that you would otherwise be eligible for.  

The EV credit is a nonrefundable credit, so that means if you have no tax liability, you do not qualify.

  If you take the credit at the dealership and do not have tax liability at the end of the year, you would have to pay the credit back when filing your return.  Basically, the credit is given in advanced on your behalf by the IRS to the dealer.  If you do not qualify for whatever reason, they make you pay back whatever part you did not qualify for. Also, if you filed a joint return, even though you take one credit at the dealer, you would still be limited to only being able to take that credit.  You would not be able to then claim the credit on your tax return. 

Clean vehicle Credits

Married Filing Joint versus Separate