Question

EV Tax Credit

Forum|Forum|4 years ago
October 4, 2021
1 reply
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Hi

I just want to understand how EV tax credit works.

My filing status is usually "married filing jointly". We are a family of 4 (2 kids).

Last year our federal tax was $5200 (after child tax credit) on 104K income.

This year we expect it to be around 120K.

Also, I had some 40K in relocation expenses added to my W2 as income. My company already paid income tax for the relocation expenses (around $8k tax for 40K expenses).

So, is it safe to say that I exceeded the $7500 limit needed to get full EV credit?

Also, since my company has already paid the tax on relocation and my monthly deductions are close to actual tax rate, will I get a refund check for the EV credit?

Thank you in advance for the answers.

Critter-3

This will work for tax year 2021 ONLY ... because the CTC is fully refundable the EV credit will be used in full first so if your federal tax is as much as the credit you are good to go.