[jchoimisc2022]

Hey everyone,

First time EV buyer here.

My wife and I are about to close on an EV6 and I was wondering what I need to do to get the $7500. We will definitely have a tax bill high enough to get the full amount, but I wasn't sure if I needed to either get something in writing from the dealer, or just fill out a tax form when I do my taxes next year.

If there is only a certain amount of tax credits available per manufacturer, how will they know who to give it to first if that makes sense?

 

[Waynerm002]

Manufacturer took mine and rolled it into the car as a discount, so can't answer this for you. It would seem you would need to add it on your taxes and use your purchase documents as evidence, but I can't say for certain.

 

[jchoimisc2022]

Manufacturer took mine and rolled it into the car as a discount, so can't answer this for you. It would seem you would need to add it on your taxes and use your purchase documents as evidence, but I can't say for certain.

Are you leasing yours?

 

[prodogs]

I believe each manufacturer has a 200K limit on cars that can use the $7,500 tax credit - Kia is nowhere near hitting that- as long as you have over a 7500 federal tax bill at the end of the year you will be fine.

 

[Waynerm002]

Are you leasing yours?

Yes, I am.

 

[jchoimisc2022]

I believe each manufacturer has a 200K limit on cars that can use the $7,500 tax credit - Kia is nowhere near hitting that- as long as you have over a 7500 federal tax bill at the end of the year you will be fine.

Awesome, thank you. So there are no documents I need from the dealership other than the typical forms from a purchase?

 

[EVBlue]

Hey everyone,

First time EV buyer here.

My wife and I are about to close on an EV6 and I was wondering what I need to do to get the $7500. We will definitely have a tax bill high enough to get the full amount, but I wasn't sure if I needed to either get something in writing from the dealer, or just fill out a tax form when I do my taxes next year.

If there is only a certain amount of tax credits available per manufacturer, how will they know who to give it to first if that makes sense?

My accountant say all he needs is the VIN.

 

[alansh42]

You need to file form 8910 form 8936 with your return. You just need the model, date purchased, and the VIN.

Edit: thanks to @jadziedzic for the correction.

 

[JRSNoVa]

I believe each manufacturer has a 200K limit on cars that can use the $7,500 tax credit - Kia is nowhere near hitting that- as long as you have over a 7500 federal tax bill at the end of the year you will be fine.

To clarify, to get the full credit you need a federal tax liability of $7500, which the total of all the assessed taxes (line 24 on p. 2 of the 1040), not the "What you owe" (line 34) that accounts for what you already paid and other credits.

 

[jadziedzic]

Form 8910 is for alternative fuel vehicles (e.g., fuel cells), and expired for tax year 2021. Form 8936 is for battery electric vehicles and is the form you will need to file with your federal form 1040.

 

[dscoti]

Typically if you are leasing you don't get the tax credit. That credit "belongs" to the owner/purchaser of the vehicle. In the case of a lease, the financing institution. However, YMMV.

When I bought my 2017 Volt, I got the full $7500 tax credit which came off the top of my taxes. When I bought my solar in tax year 2020, after retiring, I didn't have enough to get the $7000 credit, but carried over the remainder in tax year 2021. Again, everyone's tax situation is different so YMMV.

 

[dawilso9]

Go onto the IRS website and use their withholding calculator.

Tax Withholding Estimator | Internal Revenue Service

Check your tax withholding with the IRS Tax Withholding Estimator, a tool that helps ensure you have the right amount of tax withheld from your paycheck.

www.irs.gov

This will tell you what to change your W-4 to with your employer to get your tax credit during the year instead of in your return. You put in the data from your last paycheck and it does the math to see what number to put to reduce the federal taxes taken from your paycheck. I knew I was getting an EV this year so I changed my W-4 at the start of 2022 and put $7500 on the additional credit line. Your number will be higher since we are part way through the year and they will need to take out even less to catch up.