The EV tax credit eligibility depends on your modified adjusted gross income (MAGI) either in the year of purchase or the prior year – you can use the lower MAGI of the two years to qualify. If both years’ MAGI exceeds the limit, you cannot claim the credit.
Key Details:
- Income limits:
- $300,000 for married couples filing jointly
- $225,000 for heads of household
- $150,000 for single filers and other filing statuses
- Test both years: You can use your MAGI from the year of purchase or the prior year, whichever is lower.
- Exceeding limits: If your MAGI exceeds the threshold in both years, you cannot claim the credit.
For example, if your 2025 MAGI is $160,000 (single filer) but your 2024 MAGI was $140,000, you can still qualify using the 2024 MAGI. However, if both years’ MAGI exceeds $150,000 (single), you are ineligible.
Additional requirements include battery sourcing thresholds and vehicle price caps, but income limits are strictly enforced.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/can-i-still-claim-the-ev-tax-credit-if-my-income-exceeds-the-limit-in-the-year-i-purchase-the-vehicle/
