Can I file separately to claim EV credit

[Ajinqu99]

I’m married and our household income is >300,000 but my income is <150,000. could I file separately to claim the 7500 EV credit if I buy a qualified EV car based on the signed Inflation Reduction Act?

[tagteam · Accepted solution]

See EV/PHEV Tax Credit Changes with Inflation Reduction Act (intuit.com)

See also BILLS-117hr5376enr.pdf (congress.gov)

Limitation is based on MAGI.

[NCperson]

@Ajinqu99 - be mindful that the income limitations are based on CURRENT year and PRIOR year.  So your income would have to be below $150,000 (MFS) in one of the two years to qualify. 

Also, be very careful about filing MFS, you may be collectly losing more than $7500 in tax benefits by filing MFS vs. MFJ. The larger the difference between your income and your spouse's income the likelier this will be true 

lastly, the credit is 'non-refundable' so that is can only reduce Line 22 of Form 1040 to zero and not lower. In the simplest of cases, filing MFS, adjusted gross would need to be at least $67,000 to capture the entire $7,500.