Tax credit for electric vehicle purchase

[tierraberrenda]

I want to convert my IRA to a Roth IRA.  Can I use my electric vehicle purchase tax credit to offset the tax liability?

[AdamNe]

Hello @tierraberrenda !

The short answer is yes, if you receive a credit for purchasing an electric vehicle, it will offset any tax liability you have for any reason .

The way it works is essentially you compute your total taxes due first (from all sources), then you subtract any credits you are entitled to, thus getting your total tax liability. 

I hope this answers your question! 

All my best,

Adam, EA

TurboTax Live Expert