EV Tax credit 2023 - Married Filing Separately

[BrittanyS]

To file married filing jointly for 2022, you will need to have been married by the end of 2022.  If claiming the credit for 2022, you will use the threshold for single filers.  If you are looking into whether you can claim the credit when you file your 2023 return, you will use your MAGI for 2023, not 2022.  If your MAGI is $300,000 or less for married couples, you can claim the credit, or you can file separately, and your MAGI has to be $150,000 or less. 

[zdhanani4]

My wife and I don't qualify for any of the MFJ credits - we will likely pay a little extra in taxes in 2022 (not that much extra) to do MFS. We don't have a child, but we will in 2023, thus for 2023, we will want to do MFJ. The EV Tax Credit seems to apply if the AGI was <150k in 2022 or 2023 on the 2023 return.

If we file jointly in 2023, but file separately in 2022 when one of us has an AGI <150k, can we claim that EV tax credit on our 2023 taxes?

For the record, I do not have an EV, but am considering buying one in 2023 if there is a way to claim it on my taxes for 2023 based on 2022 AGI w/ MFS.

[MichaelG81]

If you file jointly in 2023, which is recommended especially for your new-born and claiming certain credits due to MFJ now or for 2023, which some don't count if MFS. However, if one of you makes more than 150,000 it'd be OK as long as both incomes combined do net exceed 300,000 for the year and MFJ.

In addition, your modified adjusted gross income (AGI) may not exceed:

• $300,000 for married couples filing jointly
• $225,000 for heads of households
• $150,000 for all other filers

@zdhanani4 

[zdhanani4]

We will be over the $300k AGI in 2023, but if we file separately for 2022, one person will be below the $150k threshold.

The way I understand the EV credit is that they take the lowest of your 2022 or 2023 AGI to determine if you qualify for the credit. If I buy an EV in 2023, my 2022 AGI could count - a year in which we file separately and have one individual from the marriage qualify.

Basically asking if anyone believes that we would qualify when we file jointly in 2023 based on the 2022 AGI rules?

[Vanessa A]

No.  If you filed jointly next year, then the income would be based on both of you not just one of you. 

At this point, unless further clarification comes out, if one of you have income in 2022 of less than $150,000 and you filed separately for both years, then if that person bought the vehicle, they would be able to claim the credit.  This is one of the few credits that you can still claim if you are married and file separate returns. 

[RaviKG]

As I understand, if you already filed 2022 as MFJ (I am not sure if you did), then you cannot change the status of 2022 to MFS (although you are allowed to chahenge status from MFS to MFJ for past filing). This would mean you may not be able to use the 2022 AGI filed under MFS.