I bought a used 2022 Chevrolet Bolt EUV in 2024. Why is TurboTax only allocating $1.3k of the $4k EV credit, even though that leaves me w/ $3.2k due in federal taxes?

I am self-employed and eligible for ACA Marketplace subsidies and the QBI deduction, but that still leaves me with more tax due than the amount of the credit. I had factored in the $4k EV credit when paying my estimated taxes, and if the full amount isn't applied, I will owe a penalty.

1923

Expert Alumni

Mar 13, 2025 10:57:06 AM

Unfortunately credits like the Electric Vehicle credit can only be applied to your income tax due. They don't have any effect on your self-employment tax. Since you are self-employed the amount of tax that you are left with after the EV credit is applied is the social security and medicare that is due on your self-employment income. The EV credit can't be used to reduce that.

@TMSea

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I bought a used 2022 Chevrolet Bolt EUV in 2024. Why is TurboTax only allocating $1.3k of the $4k EV credit, even though that leaves me w/ $3.2k due in federal taxes?