To qualify for the federal EV tax credit, your modified adjusted gross income (MAGI) must not exceed the following limits for the tax year you purchase the vehicle or the prior year:
- Single filers: $150,000
- Married filing jointly: $300,000
- Head of household: $225,000
- All other filers: $150,000
Key details:
- MAGI is calculated using Line 11 of IRS Form 1040, with certain deductions or exclusions added back to your AGI.
- The full credit of up to $7,500 requires the vehicle to meet both battery critical minerals and component sourcing thresholds (partial credits of $3,750 apply if only one requirement is met).
- Critical minerals must be extracted/processed in the U.S. or a free-trade partner (e.g., 50% in 2024, 60% in 2025).
- Battery components must be manufactured/assembled in North America (e.g., 60% in 2024-2025, rising annually).
For used EVs, income limits are half the amounts above, but this applies to a separate credit (up to $4,000).
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-are-the-income-eligibility-requirements-for-the-federal-ev-tax-credit/
