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Level 10
April 8, 2025
Question

Vehicle credit allowed but MAGI exceeds thresholds

  • April 8, 2025
  • 1 reply
  • 3 views

MFJ with MAGI > 150k in 2023 and MAGI > 300K in 2024. 

The 2023 AGI was input to Form 34. I answered the questions 4a to 8e. I input the tentative credit of $7,500So the New Clean Vehicle Credit should be disallowed.

LC allows it.  I expected it would be disallowed by LC as it knows the MAGI for each year.

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1 reply

Level 10
April 8, 2025

Maybe I need to omit the tentative credit?  That is not it because the instructions say:  

  • If Part II is needed, an entry is required for the tentative credit amount to generate the form.
Level 10
April 8, 2025

I'm dumb, or stressed or both.  They are allowed the credit because MAGI does NOT exceed 300K for BOTH years.