What ways can I take advantage of the EV tax credit?
I'm single, don't make a lot of money, and typically don't itemize. I bought an EV this year, so how can I take advantage of the EV tax credit? I tried to itemize last year but didn't meet the $12,500 threshold. I hate to leave $7500 on the table. Thank you.
Answers
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Itemizing doesn't have anything to do with the EV credit. However, you have to have enough of a tax liability to apply it to. Your tax liability is the calculated tax before you apply your withholding and other payments.
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@JMSSGV is correct. The EV tax credit is a nonrefundable tax credit, meaning it can only be used to offset income tax liability but can't result in a refund beyond reducing your income tax to $0. As long as you have some tax liability, the EV credit should be beneficial to you on your tax return.
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Hi jljl,
As others have correctly stated, the EV credit is not part of itemizing on Schedule A and is considered a non-refundable credit, meaning it will only help to reduce your tax liabiity to $0.
If you can't use part of the personal portion of the credit because of the tax liability limit, the unused credit is lost. The unused personal portion of the credit cannot be carried back or forward to other tax years. The portion of credit attributed to depreciation for business or investment is treated as a general business credit which may be carried forward if unused.
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Thanks to all to responded to my question! It appears that I'm **** I'm out of the credit. Once again the Senators and Congressmen have written bills to help their rich cronies, and then they wonder why citizens are getting fed up with the government.
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If you'd only waited until next year. Starting in a few days, you can get your credit as a sort of point-of-sale rebate. And you don't need a tax liability like you do in 2023.
