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EV tax rebate

Forum|Forum|2 years ago
June 20, 2023
3 replies
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Married filing joint. Can we both get two rebates if we buy two EVs in two different years as single owners?

Other rules such as income, EV price etc. are satisfied?

Thank you for any help. Jay

Not A Product Question

Best answer by NCPERSON1

@gsekera - if you are asking about the EV credit specifically, as long as you meet the requirement, there is no limit on the number of NEW EV's you can claim for the tax credit. However, be aware that the EV credit is a non-refundable credit, which means it is used to reduce Line 22 (prior to the credit) to no less than zero. if you are unable to use the entire credit, it is lost for good; it can not be rolled to the next year. The credit is tied to the vehicle.

However, for a USED EV, you can only permitted to one credit every three years. And that is based on the date the cars were purchased to measure the 3 years. The credit is limited to 30% of the vehicles purchase price, not to exceed $4,000. And again, ithe EV credit is a non-refundable credit, which means it is used to reduce Line 22 (prior to the credit) to no less than zero. if you are unable to use the entire credit, it is lost for good; it can not be rolled to the next year. The credit is tied to the taxpayer.

Critter-3

Yes ... you can each buy a EV and get the CREDIT (not rebate) in both tax years if all other rules are covered and you have enough tax liability to absorb the full credit since it cannot be carried forward.

N

NCPERSON1

there is also nothing that prohibits you from purchasing two NEW EV's in the same year. you just have to meet all the other eligbility rules and have a tax liabilty (line 22 of Form 1040) of $15,000 (prior to the credit).

for used EV's there is a once every three year limit for the credit. .

G

gsekeraAuthor

Thank you both for your great advice/help

G

gsekeraAuthor

Is there a limit to the number of tax rebates/person during the 10 years? Can you get it every year? Thanks.

N

NCPERSON1Answer

@gsekera - if you are asking about the EV credit specifically, as long as you meet the requirement, there is no limit on the number of NEW EV's you can claim for the tax credit. However, be aware that the EV credit is a non-refundable credit, which means it is used to reduce Line 22 (prior to the credit) to no less than zero. if you are unable to use the entire credit, it is lost for good; it can not be rolled to the next year. The credit is tied to the vehicle.

However, for a USED EV, you can only permitted to one credit every three years. And that is based on the date the cars were purchased to measure the 3 years. The credit is limited to 30% of the vehicles purchase price, not to exceed $4,000. And again, ithe EV credit is a non-refundable credit, which means it is used to reduce Line 22 (prior to the credit) to no less than zero. if you are unable to use the entire credit, it is lost for good; it can not be rolled to the next year. The credit is tied to the taxpayer.

G

gsekeraAuthor

Thank you so much for the excellent explanation. Jay

G

gsekeraAuthor

After you buy an EV, does the seller required to report to IRS for you to get the tax rebate with Form 8936?

Can I just do the Turbotax at the end of year? without the seller informing the IRS? by providing cancelled check, other buying details including VIN #?

My dealer is clueless? Thanks for any help.

Critter-3

@gsekera

Are you buying a new or used EV ?

Critter-3

To claim the EV tax credit, you need to purchase a qualifying electric vehicle, obtain a letter of certification from the dealership, fill out IRS Form 8936, and look for state rebates and credits.

https://www.irs.gov/credits-deductions/clean-vehicle-credit-seller-or-dealer-requirements

Report Information to the IRS

Submit the same information to the IRS by January 15 of the year following the purchase. The first reports are due to the IRS by January 15, 2024. Check back for further guidance on how to submit these reports.