Solved

If every year I recieve a Tax refund and I buy a electric vehicle with a tax credit of $7,500, can I still get that $7,500 even though I don't owe any federal taxes ?

Forum|Forum|3 years ago
April 19, 2023
3 replies
0 views

No text available

TurboTax Premier Online

Best answer by ThomasM125

You can't use the electric vehicle (EV) credit to the extent you don't have any federal income tax. You mention that you don't owe any federal tax, but I'm not sure if what you mean is you don't have to pay any tax when you file your return, after your tax withheld is factored in, or if you don't have any tax to begin with. If you have tax and it is paid from your tax withheld, then you could use the EV credit to get a refund of taxes. But if your income is so low that you don't have any tax, then you can't use the EV credit.

VolvoGirl

Employee

It's not if you owe or get a refund. It is if you have a tax liability on 1040 line 24 Total Tax. Or it might be line 16 for Tax. I not sure which line it reduces.

T

ThomasM125Answer

You can't use the electric vehicle (EV) credit to the extent you don't have any federal income tax. You mention that you don't owe any federal tax, but I'm not sure if what you mean is you don't have to pay any tax when you file your return, after your tax withheld is factored in, or if you don't have any tax to begin with. If you have tax and it is paid from your tax withheld, then you could use the EV credit to get a refund of taxes. But if your income is so low that you don't have any tax, then you can't use the EV credit.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"

C

cjhalani0205Author

Basically electric Tax credit will be deducted from the amount mentioned under "Federal Income tax withheld" in W2, right?

DoninGA

Employee

@cjhalani0205 wrote:

Basically electric Tax credit will be deducted from the amount mentioned under "Federal Income tax withheld" in W2, right?

No. Nothing concerning any type of federal or state tax credit is reported on the W-2 you receive from your employer.

A

AmeliesUncle

Look at line 18 of your Form 1040. The credit is applied against that.

However, if you qualify for other credits, they MIGHT come first (depending on the credit). So if you want to be 'safe', look at line 22 of your Form 1040. If that is at least $7500, it won't be limited.