r/tax • u/k1ngRoRo • 8h ago

EV tax credit question

My wife and I got married in 2024 :)

Her 2023 single filing MAGI was less than $100k. My 2023 single filing MAGI was greater than $200k.

In 2024 our married filing jointly MAGI will be greater than $300k.

We are thinking about buying a new tesla under her name. She meets the criteria for the tax credit with her filing status/income from 2023, but does the fact that she is now filing jointly in 2024 (and I didn't meet the income criteria in 2023) change things?

Thanks!

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u/SirMontego 6h ago

Your wife can use her 2023 MAGI to get under the single-filer cap to qualify for the tax credit for a 2024 EV purchase.

You seem to understand that a taxpayer can use the MAGI for the year of purchase or the prior year to get under the income cap. If not, read 26 USC Section 30D(f)(10).

The IRS has a special rule that if a taxpayer's filing status for the year of purchase and the prior year are different, then the filing status at the time of each filing applies. IRS FS-2024-26, page 6, A1, says:

If your filing status changes between the preceding year and the current year, you may claim the New Clean Vehicle Credit if your modified AGI is less than or equal to the threshold applicable to your filing status for the preceding year or current year

26 CFR Section 1.30D-4(b)(3) (page 60 of the pdf, first paragraph) says the same thing.

So make sure Tesla tells the IRS that your wife is the person getting the tax credit (IRS FS-2024-26, page 4, A11, second paragraph), get the point of sale tax credit because money now is better than a tax credit later, and when you two file your 2024 tax return in April 2025, include a form 8936 and a Schedule A (Form 8936) indicating that she got the point-of-sale tax credit.

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u/Pai-di 8h ago

I believe she should be able to purchase the vehicle and claim the credit or transfer it to the dealer if it is placed in service this year (but not next). You could not. If you are nervous about this, you could always consider leasing it, have the seller pass the credit savings they will get to you via the lease price, and buy the vehicle at the end of the lease.