If your income exceeds the eligibility limit in the year you purchase an electric vehicle (EV), you may still be able to claim the tax credit if your income was below the limit in the previous year. The IRS allows you to use the lesser of your modified adjusted gross income (MAGI) from the year you take delivery of the vehicle or your MAGI from the previous year when determining eligibility for the EV tax credit.
For new vehicles, the income limits are:
- Single filers: $150,000
- Head of household: $225,000
- Married filing jointly: $300,000
For used vehicles, the limits are:
- Single filers: $75,000
- Head of household: $112,500
- Married filing jointly: $150,000
If your income exceeds these limits in the year of purchase, but was below the limits in the prior year, you can use the prior year’s MAGI to qualify for the tax credit.
However, if your income exceeds the limits in both years, you will not be eligible for the EV tax credit.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-happens-if-my-income-exceeds-the-eligibility-limit-in-the-year-i-purchase-an-ev/
