Why didn’t I receive my full $7500 EV tax credit while having plenty of tax liability?

[177arkly]

I have a $40k tax liability. Refund shows $5500 refund and after I input the EV credit, it only increased by $2200. 

[SweetieJean]

What is on line 23 of Form 8936?
<a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/f8936.pdf">https://www.irs.gov/pub/irs-pdf/f8936.pdf</a>

[177arkly]

7,500

[177arkly]

Line 10 shows 2,500. Is business use limiting the deduction?

[SweetieJean]

Okay, what is on each of Lines 11,12 and 13 of Form 1040?
<a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-pdf/f1040.pdf">https://www.irs.gov/pub/irs-pdf/f1040.pdf</a>

[177arkly]

47k, 12k, 35k

[Anonymous]

not every vehicle qualifies for the full $7,500

what vehicle did you buy?  

and look at the form  - 8936

[177arkly]

I bought a Tesla Model 3 and the form said I received the $7500 credit. But the amount only adjusted by $2200 when I finished Inputting the EV credit.

[SweetieJean]

EV credit is a non refundable credit, meaning it is limited by the amount of unused tax that it can offset.  The child tax credit is a higher priority credit, and will be deducted from the tax before the EV credit is deducted.

[SweetieJean]

"Line 10 shows 2,500. Is business use limiting the deduction?"
@TaxPro+40  Can you address?