If your income exceeds the limit for the purchase tax credit, you will not be eligible to claim the credit. For new electric vehicles, the income limits are as follows:
- Single filers: You are not eligible if your modified adjusted gross income (MAGI) exceeds $150,000.
- Married couples filing jointly: You are not eligible if your MAGI exceeds $300,000.
- Head of household: You are not eligible if your MAGI exceeds $225,000.
For used electric vehicles, the income limits are more restrictive:
- Single filers: The limit is $75,000.
- Head of household: The limit is $112,500.
- Joint filers: The limit is $150,000.
What to Do If Your Income Exceeds the Limit
- Check Eligibility in Prior Years: If your income was lower in previous years, you may use the MAGI from those years to determine eligibility for new vehicle credits.
- Consider Alternative Tax Incentives: Look into local or state-level incentives that may not have income limits.
- File Separately: If you are filing jointly, consider filing separately if one spouse earns below the income threshold to potentially qualify.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-happens-if-my-income-exceeds-the-limit-for-the-purchase-tax-credit/
