Question

EV Tax Credit

Forum|Forum|4 years ago
April 4, 2022
1 reply
0 views

If I am eligable for EV Tax Credit up to $7500 and I don't owe any taxes to pay, can I receive refund EV Tax Credit + what ever amount redund amount I'm getting?

Example: federal tax refund is $5000 and EV Tax Credit is $7500, my refund will be $12500?

Thank you

A

AamilD

No. The Qualified Plug-in Electric Drive Motor Vehicle Credit is a non refundable credit. A non refundable credit can reduce your tax liability to 0 (zero), however it cannot result in a refund.

So the maximum amount of credit you will get is equal to your total tax liability. However, it will not result in an additional refund if your total tax liability is less then $7,500.