Lowering AGI to receive EV Tax Credit for Tax Year 2023 in 2024

[Skyline101]

Single filer - my current AGI is at $160K for Tax year 2023. 

Currently, I am $10K away. I have about $3k in interest earned in I savings bond. I have an active traditional IRA and Roth IRA accounts. My side business also has an active roth 401k and 401k under my personal name. 

I am trying to see what options I have left in 2024 to lower the AGI to be eligible for the New EV tax credit.

[Mike9241]

have you maximized the deductible 401K/IRA  contribution for 2023?  There aren't many things that can lower agi once the year is over.

It's unclear as to what year you'll be claiming the EV credit. if 2023 you can use agi from either 2022 or 2023.

if the EV credit is for 2024 the AGI years are 2023 and 2024.  there are twists if your marital status changes.

[Skyline101]

I am claiming it in 2023. 

In 2022 - I made 180K

[netphish]

You can use your modified AGI from the year you take delivery of the vehicle or the year before, whichever is less. If your modified AGI is below the threshold in 1 of the two years, you can claim the credit. One idea is to switch your healthcare plan to high deductible for 2024 and contribute the max ($4150 for 2024) That will get you down a bit. If you have business assets or rental property you can depreciate those assets. Regardless, I hope you get your EV and stick it to the oil companies!

[Skyline101]

I took delivery in 2023. Can I still contribute to the HSA for 2023?

[netphish]

I don't think so but I did notice that there is a turbotax question that asks if your employer made a contribution to HSA for 2023 in 2024 so a loophole may exist....

[BillM223]

@Skyline101

@netphish

1. Yes, you can still contribute to your HSA for 2023. If you do this, you MUST tell the HSA custodian that the contribution is for 2023, or else by default they will mark it as for 2024.

2. That being said, you cannot retroactively switch your health coverage to HDHP for 2023. You can make the contribution in #1 ONLY if you already had HDHP coverage and no conflicting coverage (normal employer health insurance is an example of conflicting coverage).

So your plan probably will not work, unless you already had HDHP coverage and were eligible to have an HSA.