EV Tax Credit for Couples Married in 2023

[swang30]

My girlfriend and I are planning to get married this year and file jointly for 2023 tax. We want to take advantage of the 7500 tax credit towards buying a new Tesla. Here's the situation.

Our total income will be above 300k (the income cap) in 2023 so that would make us ineligible for the tax credit. However, we both filed as single in 2022 and my girlfriend's modified AGI is less than 150k and has tax reliability above 7500. She will be the primary owner of the car and our names will both be on the registration. 

Could we get the 7500 tax credit if we file jointly in 2023?

[KochuK]

Hi swang30,

Your filing status changes between the preceding year and the current year, you may claim the new clean vehicle credit if your modified AGI is at or below the threshold in the preceding year or current year based on applicable filing status for that year.

In another words, you as married filing jointly couple in tax year 2023 can claim the $7,500 EV credit since your girlfriend's modified AGI for tax year 2022 as a single filer is below the threshold.

Please see below link, Topic B, Q1

Frequently Asked Questions About the New, Previously-Owned and Qualified Commercial Clean Vehicles Credit

https://www.irs.gov/newsroom/frequently-asked-questions-about-the-new-previously-owned-and-qualified...

Hope this helps. 

Kochu Kitty

[sparkx]

How do you file form 8936 for this scenario? Have to file as a married couple separately? 

[Vanessa A]

Yes, you would have to file separate returns in order to get the credit in 2023 for a Tesla bought in 2023 if your combined income is too high.