Question about EV used car credit

Forum|Forum|1 year ago
February 5, 2025
1 reply
0 views

hello

IRS has this statement on used EV tax credit. "You can use your modified AGI from the year you take delivery of the vehicle or the year before, whichever is less. If your income is below the threshold for 1 of the 2 years, you can claim the credit."

In this case is year means Calendar year or Tax year? My 2023 income is below and not 2024 and if I want to buy car in Feb 2025 I am still with in tax year..

Thanks

AnnetteB6

In general, the calendar year and tax year are the same for individuals.

If you purchase the vehicle in February of 2025, then that possible tax credit would be claimed on your 2025 tax return. That purchase would not qualify as falling within the 2024 tax year.

At that point, your modified AGI for 2025 would be taken into consideration to determine if you are eligible to claim the credit. If not, then your modified AGI for 2024 (the previous year) could be considered.

As of today, the way the qualifications are written, your 2023 modified AGI would not be considered for a purchase that was completed in February of 2025.

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