Can a self employed get full EV/PHEV tax credit?

mridul032
mridul032 Member Posts: 1 Newcomer
in Credits/Deductions

Hello, I purchased a Jeep Wrangler PHEV in 2024. As a self-employed business owner, I owe the IRS less than the available tax credit. For example, if I owe $1,234 to the IRS, I will receive a $1,234 tax credit specifically for my plug-in hybrid Jeep Wrangler. However, the credit amount listed on my Form 15400 is $3,750.

Comments

  • MatthewD
    MatthewD FreeTaxUSA Team Posts: 587

    Hi mridul032,

    The EV credit is a nonrefundable credit, meaning it can reduce income taxes, but cannot be refunded, so it cannot be more than your income tax. This is why it is limited to $1,234 and cannot be carried forward.

    For self-employed people, the credit cannot reduce your self-employment taxes. Only Income Taxes.

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