To determine if your used electric vehicle (EV) qualifies for the tax credit, follow these steps:
Eligibility Criteria
- Purchase Price: The vehicle must be purchased for $25,000 or less from a licensed dealer.
- Vehicle Type: It must be a previously owned plug-in electric vehicle or fuel cell vehicle.
- Dealer Requirements: The seller must provide you with information about the vehicle’s qualifications and register the sale with the IRS.
- Purchase Year: The purchase must be made after 2022.
Buyer Eligibility
- Income Limit: Your modified adjusted gross income (AGI) must be below:
- $150,000 for married filing jointly or surviving spouses,
- $112,500 for heads of households, or
- $75,000 for all other filers.
You can use your AGI from the year you take delivery of the vehicle or the previous year, whichever is lower.
- Usage: The vehicle must be purchased for personal, non-commercial use and not for resale.
- Dependent Status: You cannot be claimed as a dependent on another person’s tax return.
- Frequency of Claiming: You cannot claim the used clean vehicle tax credit more than once every three years.
Tax Credit Amount
The tax credit is either 30% of the sale price or up to $4,000, whichever is lower.
Verification
At the time of sale, the dealer should provide you with documentation proving the vehicle’s eligibility for the credit. They must also report the sale to the IRS.
Additional Resources
For detailed information, you can refer to IRS Publication 5866-A or consult with a tax professional.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/how-do-i-find-out-if-my-used-ev-qualifies-for-the-tax-credit/
