Electric vehicle tax credit income cap

[gckc]

If I order a qualifying PHEV  2023 model vehicle in October 2022 and it is delivered in 2023 then I have the following question.

If our joint income(MFJ) is >300k in 2022 but would fall below 300k in 2023 can I claim the tax credit on my 2023 taxes filled out in 2024.

Or is our AGI in 2022 used and therefore we would not qualify for the tax credit.

The IRS info posted online is unclear and they transfer me to a dead department that does not take questions by phone or email... gotta love em.

[Critter-3]

Since you will take delivery of the car in 2023 then you will claim the credit on the 2023 return using your 2023 income.  

[gckc]

Thank you.

I thought this was most likely the case, but it is almost a $7000 tax credit difference depending on the answer, so I needed confirmation.

You answered the question in minutes,  where alternatively I spent four hours on the phone trying with the IRS only to be transferred to a non-attended line on each attempt.

I told two different people at the IRS "If you transfer me to that line it is the same as hanging up on me."

They both said sorry and did it anyway.

Sorry for the short rant.

Thanks again.

[Critter-3]

Let's put it this way ... bottom line for this credit.   When you pre order a car the VIN is not available   and  on the credit form you must enter the VIN  and until you get the title paperwork  you will not have this number so you cannot claim the credit until you get the car. 

[gckc]

Understood, and that makes sense about the VIN.

In my case the whole question was which tax year is used for the income cap, prior year or current year.

What I found on the web either never specified or was contradictory.

I would assume current year on vehicle delivery, but that was an assumption and I did not want to find out otherwise after the car was ordered.