Could I use Electric Vehicle Tax Credit from my spouse while she doesn't have income?

[wliangxyz]

If my spouse purchased an Electric Vehicle but she doesn't have income this year, could I use the Electric Vehicle Tax Credit when we are filing tax jointly next year? I am a full-time worker.
Also should I withhold less this year to be able to claim the full credit?

[Critter-3]

File a joint return even if she had no income and her credit is both of yours on that joint return.  If you don't file jointly then you will lose the credit.  

[GeorgeDenseff · Accepted solution]

You can claim your spouse's electric vehicle on your joint return.  Your withholding amount will not increase or decrease the amount of the non-refundable credit.  Your credit will be applied to amount of taxes that you actually pay for the year.  Withholding just affects whether you have more money in your paycheck or more in your return but it is the same money.

[wliangxyz]

Thanks for the reply! So as an example, if my tax this year is 20k, and I withhold 21k, I could still get refund of 7.5k electric car federal tax credit + 1k overpaid, do I understand correctly?

[Critter-3]

Ok ... simply run the tax form to see this calculation...

tax 20K  -  7,500 credit =  12,500 tax owed  after credit 

21,000 withheld - 12,500 tax owed  = 8,500 refund