Here is my situation:
I am buying a new Tesla Model Y and would like to see if I can claim the EV tax credit. I am working full time but my total annual income is above the AGI limit. My wife is currently not working so she does not have an income. We usually file our tax jointly, but that would not qualify the tax credit. I am wondering if we can still get the tax credit, if we:
1. Have my wife to be the owner of the car.
2. In the 2024 tax return we file separately, so my wife's tax return would have no income.
So my questions are:
1. Is it a good way to get the tax credit?
2. If we will file the tax return separately, most likely we will pay a higher tax. In this case, is it still worth doing it?
Thank you and appreciate your input!
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that won't work.
the EV credit reduces your tax liability and it what is called a 'non-refundable credit"
Since your wife does not work and if she were to file separately, her tax liability would be zero so the credit would not provide any value as there is nothing to subtract from.
Remember that your AGI has to be below the limit either in the current year OR THE PRIOR YEAR. would you qualify based on last year's income?
Thank you for the input. Our last year's AGI did not qualify either. So I guess we will have to pass.
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