Found out today how much of the $7,500 fed rebate I qualified for (2022 Hyundai Ioniq 5)

[Mr. Wonderful]

I sold my 2021 MYLR to buy a new Ioniq 5 in March 2022 which at the time qualified for the $7,500 max rebate.
Well, turned out to be a bad idea - my Hyundai developed the dead 12v battery problem and I am waiting for
my lemon lawsuit to be resolved. On Feb. 3, 2023, I ordered a MYP and am awaiting the arrival hopefully next month.

I picked up my tax return today, anxious to learn how much of the rebate I qualified for, and I am receiving
$7,150 of the $7,500 due to my tax liability not allowing for the full rebate. I'm still really pleased I'm getting
that much, and will hopefully be able to qualify again next year for my MYP purchase.

 

[swaltner]

(NOT FINANCIAL OR TAX ADVICE!)

Bummer that you weren't able to take full advantage of the tax credit.

I have suggested several times for people that have money in a Traditional IRA do a Roth Conversion to artificially inflate their income if there is any question of being able to take full advantage of the non-refundable tax credit for EV purchases.

There's very little that you can do in 2023 to impact your tax situation for last year. If you made a deductible contribution to a Traditional IRA last year, you could possibly recharacterize a portion of that as a Roth IRA contribution, this increasing your tax liability for 2022 and possibly being able to claim the full credit.

Again, I don't know your tax situation, so talk to someone that can help you verify this if you want to try going for the $350 of the tax credit that you missed out on.

 

[Mr. Wonderful]

Thank you for your advice, but I am almost 76 y/o with no IRA at this point.
I did get lucky by taking $30k out of a 7 year fixed annuity (no penalty withdrawal)
and that added to my tax burden.

 

[Kandiru]

Great EV, enjoy!