Used EV credit may not apply?

Forum|Forum|1 year ago
February 11, 2025
2 replies
8 views

I need some clarification.

I have a client who purchased a used Tesla this year. His 2024 AGI is 10k and he will be due a refund. Eventhough he meets all the criteria for the 4k, the fact that he doesn't owe taxes means he is NOT eligible to take advantage of the 4k rebate. Did I understand this right?

ProSeries Basic

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abctax55

Level 15

Rebate?

Or credit?

HumanKind... Be Both

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palango7Author

Level 2

Credit. Sorry for the confusion

Just-Lisa-Now-

Intuit Community Champion

The EV tax credit is a nonrefundable tax credit offered to taxpayers who purchase qualifying electric vehicles or plug-in hybrid vehicles. Nonrefundable tax credits lower your tax liability by the corresponding credit amount but do not result in a refund of any excess credit amount

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

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palango7Author

Level 2

There may be a loophole which is that if you transfer the tax credit to a participating dealer, then the dealer can lower the cost of the vehicle up to the 4k. Am not sure how this applies to my client's situation

sjrcpa

Level 15

That is done at the time of purchase. It would be shown on the purchase receipt.

Too late now.

The more I know the more I don’t know.

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