EV Tax credits

Congratulations on the purchase of the EV!

There are eligibility requirements that includes income limitations based on your filing status, as well as qualifications for the vehicle.   To determine if you are eligible you will need to know your modified adjusted income, as well as information about the vehicle.

Here are a few of the vehicle requirements, 

• Battery storage capacity of 7 kilowatt-hours (kWh) or more Gross vehicle weight less than 14,000 pounds
• Produced by qualified manufacturer, including fuel-cell vehicles
• Final assembly in North America (Reference National Highway Traffic Safety Administration VIN Decoder database to check final assembly details.) 
• *40% or more of the value of the minerals contained in its battery mined or processed in countries with which the U.S. has a free trade agreement, or recycled in North America
• **50% or more of the value of the battery components manufactured or assembled in North America. (Rules not yet finalized from the Treasury Department. Requirement not enforced until then.)
• Manufacturer suggested retail price that doesn’t exceed $80,000 for SUVs, pickups, and vans, or $55,000 for other vehicles

https://www.irs.gov/credits-deductions/credits-for-new-clean-vehicles-purchased-in-2023-or-after

When you are preparing your 2023 tax return, you will enter your EV information in your TurboTax account, and TurboTax will generate the Form 8936 for the credit, which will be part of your 2023 tax return.  The credit is reported on your tax return Form 1040 line 20.

The credit will decrease your tax liability prior to your withholdings being applied to your tax liability.  That means more of your withholdings will be refunded to you.

I hope you find this helpful!

Connie