Question

Electric Car Tax Credit $7500

Forum|Forum|6 years ago
July 31, 2019
2 replies
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I purchased an Electric car in 2018 and it qualifies to get an EV credit of up to $7,500. From what I understood, it doesn't help if you don't have owe federal taxes ( for example, if I am getting a refund, I can't get the EV credit ).

What can you do if you don’t have a federal tax liability, but you still want to be able to take a tax credit?

DoninGA

Employee

[Removed]

Incorrect answer

B

BillM223

You misunderstand what "federal tax liability" means. This is not the amount of money you owe on line 22 of the 2018 1040, it is the amount on line 11 on the 2018 1040.

Whatever part of the credit that you are eligible for will appear on Schedule 3 (Form 1040), line 54, and will carry to line 12 in order to be subtracted from your federal income tax on line 11.

If the amount of the Qualified Plug-in Electric Drive Motor Vehicle Credit is greater than the amount of tax on line 11, then your tax due will be reduced to zero, all your withholding (and any refundable credits) will be refunded to you, but no electric vehicle tax credit that was unused in 2018 will be carried over to the next year, per the instructions for form 8936 (https://www.irs.gov/instructions/i8936) for line 23.

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