Married Filing Jointly and 2023 EV Tax Credit

[NCperson]

@gkr25 read Q1 - last paragraph 

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 at or below the threshold in the preceding year or current year based on applicable filing status for that year.

[dolphine1234]

We have been filing jointly since getting married. Our total income is over $300,000 which won't qualify for the EV credit. If we file separately this year, then I will qualify for the full credit, is there any drawback for filing separately for just one year to get the full EV tax credit?

[DoninGA]

@dolphine1234 Did you file your 2022 tax return as Married Filing Jointly and if so was your 2022 AGI under the limit for taking the EV credit?

Go to this IRS website and note the last paragraph under Q1 - 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.

Otherwise filing Separately will change several advantages you receive when filing Jointly which may or may not affect your decision.

See this TurboTax support FAQ for filing jointly versus separately - https://ttlc.intuit.com/turbotax-support/en-us/help-article/taxation/better-married-couple-file-join...

When you file separately, your tax rate is higher and you won't be able to claim:

• Education benefits
• Earned Income Credit (EIC)
• Child and Dependent Care Credit (usually)
• Adoption Credit (usually)
• The standard deduction if your spouse is claiming itemized deductions
• The full benefit for itemized deductions, the Child Tax Credit, and capital losses (you'll get only half compared to married filing jointly)

If you file separately and live in Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington, or Wisconsin, you have to deal with community property allocations and adjustments, which adds extra work and complexity to your taxes.

[NCperson]

@dolphine1234 - you always have the option to file Separate.

HOWEVER, best to calculate you taxes both ways -  use this calculator.  I suspect the tax created by filing Separate will eat up much / most / all of the EV tax credit. 

https://www.dinkytown.net/java/1040-tax-calculator.html

[News]

Links are broken. Do you have other sources regarding married couples filing separately unable to split ev credit for 2023 tax year? 

[NCperson]

@News -  splitting the credit was not asked.. however, it's the owner of the vehicle that can take the credit, Who owns the vehicle?  you or your spouse?  and why file "separate" - financially it is most always a bad deal.

https://www.irs.gov/newsroom/topic-b-frequently-asked-questions-about-income-and-price-limitations-f...

read the last sentence of Q1: 

"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."