EV credit for newly married couple using last year’s MAGI

[BrandonLive]

We just got married this summer, and I’m trying to determine if my wife would be eligible for the EV tax credit if she buys a new car this year. I believe she would be if we file separately, based on her (M)AGI being below $150K last year (and possibly this year). However, I’m not sure what happens if we were to file jointly for 2023. We won’t qualify based on our combined incomes, but in theory she qualified based on her 2022 income - which the IRS seems to say you can use to determine qualification for an individual. What I don’t see on the IRS page is anything about what happens if you file jointly for the current year but one individual had qualifying income the previous year. Are they eligible based on that prior year’s income? Or would she only be able to take advantage of the credit if we filed separately?

[tagteam]

Try Support.

How do I contact TurboTax? (intuit.com)

[Mike9241 · Accepted solution]

the rules say you can use MAGI in the year acquired or in the prior year. if your marital status changes

say from single to married you can use the MAGI and the related filing status limit of the one acquiring the vehicle from the prior year. The prior year MAGI's are not combined. 

Proposed § 1.30D– 4(b)(4) provides that if the taxpayer’s filing status changes (for example, from single to head of household) in this two-year period, the taxpayer satisfies the Modified AGI Limitation if the
taxpayer’s modified AGI does not exceed the threshold amount in either taxable year based on the applicable filing status for that taxable year.

https://www.govinfo.gov/content/pkg/FR-2023-04-17/pdf/2023-06822.pdf

pg 10/17 or the one with 23379 in upper right middle column

there is no further guidance as to what the rules are if you jointly title the vehicle.

so yes, you can file jointly for 2023 and use just Her 2022 MAGI 

[BrandonLive]

Thank you!