Just started doing some tax stuff and the program I'm using won't let me claim both the $7,500 for the car and the few hundred dollars for the home charger installation. If I claim the car, the credit goes to zero for the charger. Is this how it is supposed to work? Is this new for 2022 tax year?
Can't claim both EV tax credit and home charger install on taxes (because of Child Tax Credits)?
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Suppose it could just be a bug in the program (TurboTax). They just updated it to allow EV tax credits today.
I just did my preliminary 2022 taxes yesterday using TurboTax. It correctly let me claim both the 7,500 car credit & a 30% credit on the cost of my home charger. I think your tax software has an issue.
Same. But I use a CPA, not TurboTax. Update the software and give it another try.
So, it seems to have something to do with my liability. If I cap the EV credit at $1,500, I get the charger credit. If I cap it at $2,000 for the EV credit, I don't get the charger credit. However, I can claim the whole $7,500 EV credit without an issue. So, I don't get it. Is there a more restrictive limit on the ability to claim the charger than the EV? Bah, tax stuff
Look up the details on how your tax software is filling out Form 8911 Alternative Fuel Vehicle Refueling Property Credit. It may be that you don't have enough total tax liability to use the full charger credit when you apply the $7,500 EV credit. Or some other limitation .. You can do that easily in TurboTax by selecting View Forms under the main menu.So, it seems to have something to do with my liability. If I cap the EV credit at $1,500, I get the charger credit. If I cap it at $2,000 for the EV credit, I don't get the charger credit. However, I can claim the whole $7,500 EV credit without an issue. So, I don't get it. Is there a more restrictive limit on the ability to claim the charger than the EV? Bah, tax stuff
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The $7500 EV credit and the 30% EVSE credit are not dependent on each other. You can claim either one or both. One does not effect the other.
However the total of both credits can not exceed your total tax for the year.
I just "test" entered the numbers in Turbo Tax and both credits were applied in full.
Yeah, that isn't it. What it seems to be is that the child tax credit counts against my tax liability for the charger, but not for the EV tax credit. The issue is that I still have enough liability for the charger without the EV credit. Once you add the EV credit plus the child tax credit, there is no liability left for the charger. Weird, but it looks like the charger credit is more strict on the tax liability, with the child tax credit counting agianst you (unlike Home Energy Credits or the EV credit).
Kind of seems wrong though becasue this is effectively applying a refundable tax credit (child) before a non-refundable tax credit (charger). My general understanding is that it should apply non-refundable first, but I'm obviously no expert.
do you have sufficient tax liability to claim both?So, it seems to have something to do with my liability. If I cap the EV credit at $1,500, I get the charger credit. If I cap it at $2,000 for the EV credit, I don't get the charger credit. However, I can claim the whole $7,500 EV credit without an issue. So, I don't get it. Is there a more restrictive limit on the ability to claim the charger than the EV? Bah, tax stuff
Yes, before the child tax credit.
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Good I found this. I thought the EVSE install is not eligible for tax credit. Found the source to claim it.
Yeah, it also says form 8911 (for the charger credit) will be updated then too. I think I would still get the credit and it would all make sense if they just had Line 15b on form 8911 refer to line 8 instead of line 8a on the schedule 3 form for certain other credits. Perhaps, they will change that. Otherwise, the refundable child tax credit is counting against me before a non-refundable tax credit (charger).
Yeah, TurboTax notified me the EV tax credit form was ready.. they let me fill it out. It gave me the credit and then Turbo Tax wouldn't let me file and said they are finalizing some stuff on the form and it will be ready by 2/02/23. Hope it's not delayed cause I need to file and then use my 2022 taxes to get the State $2K credit by end of February. Good news for us reservation holders so far is the binding contract for our 2022s is left incredibly vague and they have yet to verbally rule out EV reservations as qualifying for a binding contract in tax paperwork ...in plain clear language. Fingers crossed that doesn't change on 2/02/23.
Ooh! That would be an excellent topic for a new thread. I fought about that, curious how it's going to play out.
The amount of the child tax credit is dependent on income and it is not fully refundable (it was in 2021, but has reverted back to pre-Covid rules). Might this be behind your issue?
Nah... Shhh... let's let this get swept under the rug quietly
. hahaMaybe, but it doen't affect the EV credit at all or the Home Energy credits at all either. That is the reason I think it is particularly weird for it to only affect the charger credit (could just be a bug in the 8911 form in TurboTax).
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