Skip to main content
Level 5
March 7, 2024
Solved

EV CREDIT IS FULL $7500 ALLOWED

  • March 7, 2024
  • 1 reply
  • 7 views

Entered Tesla &, below max price, above min weight and AGI less than $300k. Entered $7,500 as estimated credit and this adds to clients refund via Schedule 3.

My question is that the IRS website says "The credit is nonrefundable, so you can't get back more on the credit than you owe in taxes. You can't apply any excess credit to future tax years"

But Proseries allows full $7,500 and changes client from owing $2k to $3k refund. But the IRS definition of "what you owe" is tax liability correct? So claiming the $3k as a refund is all good?

This topic has been closed for replies.
Best answer by TaxGuyBill

Yes, all is good.

Nonrefundable means it can only offset the tax on line 18 of Form 1040 (although if there are other credits, there is a certain order that the credits are taken). 

 

 

1 reply

Level 15
March 7, 2024

Yes, all is good.

Nonrefundable means it can only offset the tax on line 18 of Form 1040 (although if there are other credits, there is a certain order that the credits are taken).