There are several good reasons to buy an electric vehicle. The main reason is the ever-increasing price of gas. It’s expensive going to work. For many who want to start a ride-sharing gig it just makes sense.
For several years now the IRS has offered people a credit for new electric vehicles. A new EV, though, may be out of range for many people’s budgets. For those who are aiming for a used EV, the IRS is now offering a credit to qualifying taxpayers.
To claim the credit, a taxpayer cannot be claimed on another’s return. The taxpayer must not be the original owner, must not have claimed a used clean vehicle credit in the 3 years before the current purchase, and must not have purchased the vehicle for resale.
Additionally, a taxpayer’s AGI must be under $150,000 if married filing jointly, $112,500 for heads of households, and under $75,000 if single or married filing separately.
To find a list of the current qualifying vehicles go to fueleconomy.gov. To qualify for this credit the vehicle must have a sale price of $25,000 or less and must have been purchased from a dealer.
The credit is claimed on Form 8936, for a maximum credit of $4,000. You’ll need the car’s VIN number. The dealer is also responsible for providing the following information:
- Battery capacity
- Sale date and sale price
- Dealer’s name and tax ID
the Confident Taxpayer 