Question

Used Clean Vehicle Credit: Married Filing Jointly

Forum|Forum|2 years ago
November 26, 2023
2 replies
0 views

Hi all,

Searched through the forum and didn't see an answer to this question.

I purchased a used EV in 2023. It will qualify for the used clean vehicle credit. My wife would also like to buy a used EV this calendar year (2023). This second vehicle would also qualify for the credit. We file as married, filing jointly, and our AGI will be less than 150k.

Can each individual in the couple can take the used clean vehicle credit, knowing that it can only be taken once every three years by an individual? In other words, does the IRS lump spouses together as "individual" in the case of married, filing jointly? I didn't see a clear answer on the guidance for the credit or the FAQ.

https://www.irs.gov/credits-deductions/used-clean-vehicle-credit

We should have enough tax liability such that both credits would take effect.

Many thanks for the guidance.

A

Anonymous_

Employee

https://ttlc.intuit.com/community/tax-credits-deductions/discussion/married-filing-jointly-and-2023-ev-tax-credit/00/3051583/page/2

B

Backpack7454Author

Thank you. I did read through that thread. I didn't see a clear answer to my question, although @Academic1 did post the same question. I'd like to know about the purchase of 2 used EV's, where one car is under the name of one spouse and the other car is under the name of the other spouse. Does the IRS consider each spouse separately even if they file as married filing jointly?

DoninGA

Employee

When filing a joint return you you will complete Form 8936 and Form 8936 Schedule A for each vehicle. If you and/or your spouse are eligible then you can purchase as many vehicles as you want. However, an individual taxpayer can only take the credit once every three years.

Go to IRS website for New Clean Vehicle Credit FAQ's - https://www.irs.gov/newsroom/topic-d-frequently-asked-questions-about-the-eligibility-rules-for-the-previously-owned-clean-vehicles-credit

Q4. Who is eligible to claim the previously-owned clean vehicle credit? (updated February 3, 2023)

A4. Only individuals who meet the following requirements can claim the previously-owned clean vehicle credit:

The taxpayer purchases the vehicle for use and not for resale.
The taxpayer cannot be claimed as a dependent on another taxpayer's tax return.
The taxpayer has not been allowed another previously-owned clean vehicle credit in the three-year period prior to the date the previously-owned clean vehicle is purchased.
The taxpayer's income level cannot exceed certain thresholds. (see Topic E, FAQ 1)

M

mamejiav

Good morning,

were you able to buy both used cars and got the EV credit? I have the same issue right now. I bought a Tesla 3 6 months ago and my wife is buying another one this weekend, Please let me know. Thanks