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acl9
New Member

EV tax credit - married filing jointly & 1 vehicle registrant

I plan to purchase a Tesla Model Y and register it under my name only. My husband and I file our taxes as married filing jointly.

 

Will the 1 person registration cause any issues when applying for the EV credit? Or is it advisable to register under both names to avoid any potential issues with the credit?

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1 Reply
marctu
Employee Tax Expert

EV tax credit - married filing jointly & 1 vehicle registrant

Thank you for the question.  See the FAQs on the Clean Vehicle Credits from the IRS here: FAQs

 

Focus on Q&A 11, which I have copied here:

 

Q11. Can the New Clean Vehicle Credit be split among multiple owners? (added March 31, 2023)

A11. No. In certain instances, multiple taxpayers may purchase, place in service and be titled as owners of a single vehicle. For example, a married couple that files separate tax returns may jointly purchase and take possession of a new clean vehicle that qualifies for the credit and both be titled as owners of the vehicle. However, only one taxpayer can claim the New Clean Vehicle Credit per vehicle placed in service, and the credit may not be allocated or prorated among multiple taxpayers. In the case of married taxpayers filing jointly, either spouse may be identified as the owner claiming the New Clean Vehicle Credit.

The name and taxpayer identification number of the owner claiming the New Clean Vehicle Credit should be listed on the seller’s report. See Topic B, FAQ 9. Accordingly, multiple owners of a new clean vehicle should inform the seller which owner will claim the New Clean Vehicle Credit so that the seller can identify that taxpayer on the seller’s report. The credit would be allowed only on the tax return of the owner listed in the seller’s report.  

 

Since you file as Married Filing Jointly as long as one of your names is on the seller's report the credit will be reflected on your joint tax return.

 

Be well and safe @acl9 

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