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In response to
"OK Tax Slackers, dumb it down for me. Tell me why I'm not getting a tax credit for my EV."
by
Mop
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did you have a tax liability? -- (edited)
Posted by
tRuMaN
Feb 18 '22, 18:33
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cause the credit is limited to your tax liability
You must have a federal tax liability in the year you purchase an electric car or plug-in hybrid to claim the tax credit. The tax liability must meet or exceed the amount of credit you're requesting. If, for example, you owe $6,000 in federal taxes, you can only claim a credit of $6,000 – even if the vehicle qualifies for a full $7,500 tax credit. It’s important not to confuse your federal tax liability with the size of the check you have to write by April 15, as your income tax liability also reflects any amounts withheld from your paycheck throughout the year.
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Responses:
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