2021 AGI for to qualify for EV tax credit?

[GadgetGary]

I looked elsewhere but couldn’t find an answer for this specific issue:

Per IRS website, “You can use your modified AGI from the year you take delivery of the vehicle or the year before, whichever is less. If your modified AGI is below the threshold in 1 of the two years, you can claim the credit.”

My 2021 AGI was less than 300k, which I filed in 2022. My 2022 AGI, which I’ll file this spring will be more than 300k. I want to buy another Tesla this month. If I do so, would I qualify? Or does the IRS mean that I buy the car in 2023, I need an income less than 300k paid in 2022 / taxes filed in 2023 or less than 300k paid in 2023 / taxes filed in 2024?

Since I won’t know my 2023 AGI until tax time in 2024 it seems strange for that to be the IRS’s meaning

Don’t roast me bro!

 

[WyoDude]

Based on how I understand it you won’t qualify.
If you take delivery in 2023 and you file in 2024, then your AGI in 2022 or 2023 has to be below the limit.

 

[GadgetGary]

Thank you. Anyone with an accounting background want to verify that info? I’m not trying to defraud the IRS and you’re probably right but for 7.5k I’d like to be sure

 

[WyoDude]

Thank you. Anyone with an accounting background want to verify that info? I’m not trying to defraud the IRS and you’re probably right but for 7.5k I’d like to be sure

Call your accountant/tax person….

 

[flgatorfan]

Call your accountant/tax person….

This, but it looks pretty simple to me. “You can use your modified AGI from the year you take delivery of the vehicle or the year before, whichever is less. If your modified AGI is below the threshold in 1 of the two years, you can claim the credit.”

Year you take delivery is 2023. Year before that is 2023-1.

 

[GadgetGary]

Call your accountant/tax person….

I am just starting out and have decent income but minimal assets so I don’t have an accountant. I was hoping by chance there’d be an accountant (or IRS person) on here

 

[jcanoe]

While you won't know your final AGI income for 2023 until the end of the year perhaps you and your spouse can plan to defer some income such a bonus until 2024 so your AGI is under the threshold.

There are things you can do to reduce your taxable income including maximizing your contribution to a 401k or other qualified plan or health spending account.

 

[slashtom]

Look for ways to decrease your AGI in 2023 if 2022 won’t qualify.

 

[vickh]

I am just starting out and have decent income but minimal assets so I don’t have an accountant. I was hoping by chance there’d be an accountant (or IRS person) on here

With that kind of income I'd get one ASAP. Some one who is strategic/planner, not just a book keeper. eg You can lower AGI with tax deferred accounts. Others here or a good accountant can suggest more strategies

 

[Trustedpro]

CPA here... It is my understanding that for any EV's purchased in 2023 that are eligible for the credit, the credit is claimed on the taxpayer's 2023 tax return (limited to tax liability) if their modified AGI is below the stated limits. The federal credit for an EV purchased in 2024 will be deducted from the POS and not on the 2024 tax return.

 

[Trustedpro]

CPA here... It is my understanding that for any EV's purchased in 2023 that are eligible for the credit, the credit is claimed on the taxpayer's 2023 tax return (limited to tax liability) if their modified AGI is below the stated limits. The federal credit for an EV purchased in 2024 will be deducted from the POS and not on the 2024 tax return.

As a follow up to my previous post, if your MAGI exceeds the allowable limits in the year you take delivery, you are eligible for the credit if your prior year's MAGI is below the limits. Here is the link to the IRS website for new clean vehicles purchased in 2023 or after: Credits for New Clean Vehicles Purchased in 2023 or After | Internal Revenue Service

 

[thetuk]

Based on how I understand it you won’t qualify.
If you take delivery in 2023 and you file in 2024, then your AGI in 2022 or 2023 has to be below the limit.

That is how I understand it as well but I am no tax expert.