My Qualified Plug-in Electric Drive Motor Vehicle Credit is less than the $7,500 max. What can I do to tax-wise to increase my personal portion of the credit?

[JohnW152 · Accepted solution]

If you'd otherwise be eligible for the full amount of the credit, but you've already offset the tentative tax on your return, there's not much you can do.

If you've got an IRA contribution entered in your return, which you haven't yet made but plan to do before the filing deadline, and for which you could receive a deduction, you could forgo that, thereby increasing your taxable income and tentative tax.  That could eat up some of the remaining credit.  See the TurboTax blog 4 Last-Minute Ways to Reduce Your Taxes for more information on this.

Unfortunately, if there's any portion of an electric vehicle credit that's unused on your tax year 2022 return, it can't be carried over to your 2023 return.

According to Line 23 in the Instructions for Form 8936 (01/2022):

If you cannot use part of the personal portion of the credit because of the tax liability limit, the unused credit is lost. The unused personal portion of the credit cannot be carried back or forward to other tax years.

[tommym5000-gmail]

Thank you for the answer!  Wish I could roll it over since the credit was the main reason I purchased the vehicle...