EV credit of 7500

[FA112]

In case we are married filling jointly for 2023 and over 300K, however one spouse is below 150K then do we have a shot of getting the EV credit for 7500? We have purchased the new EV in 2023 below MSRP 55K. Note: we also have a newborn among us this year. Can that effect us filling 'married filling separately'?

Thanks

[Bsch4477]

The lower earner can claim the credit if you file separately but you lose some credits like child and dependent care as well as other tax credits include the Earned Income Tax Credit (EITC), the Adoption Tax Credit and the Credit for the Elderly or Disabled. Also, the Child Tax Credit and the Saver's Credit will be limited to half the amount they would be if you filed jointly.

[Mike9241]

other points if married filing separately. both must use either the standard deduction or itemized deductions. depending on your relative income your total taxes before any credits could be higher than MFS thus netting some of the benefit of filing MFS to get the credit. If you have state income taxes they could also be affected.  The only way to know for sure is to do 3 returns. one MFS for each of you and a joint return.