[USA] Caveat for the US$7,500 EV tax credit in 2022?

[TXAG]

I purchased my 2022 RWD in June and qualify for the US$7,500 EV tax credit. I suspect, however, that I won't get the credit if I'm owed a refund on my 2022 tax return. Can anyone confirm if this is true? If true, I'll try to eliminate withholding taxes for the rest of the year.

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[EJM22]

Yes, you have to owe. And if you owe only $6500 you only get credit for $6500 u lose the other $1000. I adjusted my withholdings bc of this back in Feb.

 

[X88]

I'm not a tax expert but I don't think that's correct. It's not the amount of cash tax you still owe when you file your 2022 return in 2023, but your total tax payable for the year 2022. The amount of tax withheld through the year doesn't matter, if you have over withheld that will be refunded. See the following chat thread I found through a Google search:

https://ttlc.intuit.com/community/t...ng-any-federal-tax-for-entire-year/00/2373031

 

[JustWatching]

@X88 is correct. @EJM22 is incorrect. Line 16 in your 1040 needs to be more than $7500 to get the full credit

 

[EJM22]

You’re correct @JustWatching @X88 i typed that wrong. You have to owe at least 7500 to get the credit.

 

[TXAG]

I'm not a tax expert but I don't think that's correct. It's not the amount of cash tax you still owe when you file your 2022 return in 2023, but your total tax payable for the year 2022. The amount of tax withheld through the year doesn't matter, if you have over withheld that will be refunded. See the following chat thread I found through a Google search:

https://ttlc.intuit.com/community/t...ng-any-federal-tax-for-entire-year/00/2373031

Thanks! This matches my experience with the solar panels I paid cash for in 2020. When I put the purchase price in TurboTax, 26% of the price was deducted from the tax due (it was fun watching the taxodometer count backwards). My Line 16 will be more than $7500 for 2022.

 

[JustWatching]

And of course you can reduce your withholdings so

My Line 16 will be more than $7500 for 2022.

I am sure it will be

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