Electric and Plug In Car Credit for 2021 Tax Year

Forum|Forum|4 years ago
January 16, 2022
1 reply
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Hi online community, I would like to know your opinions about the amount of the electric car credit. I know it is capped at $7,500 but it seems the software uses that amount for all models. I just look at the government site FuelEconomy.gov and it seems they have all the models and the maximum credit allowed. Is this the way other tax professional have to calculate the credit? I have to say there is a line in the worksheet to enter an amount different than the 7,500. I am just making sure, because I see a lot of electric cars in recent days. I also read that No Tesla model qualifies anymore. I will appreciate your thoughts. Thank you.

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PATAX

Level 12

Haven't had one in years. When I did it was a non-refundable credit and the client did not benefit from it since he was going to receive a full refund anyways. I would take a look at the quickfinder, and the US Master tax guide, to see what the credit amounts are, and if they differ for different vehicles, and then determine whether it is refundable or non-refundable. Also I think it may change with the soon-to-be passed tax legislation, if it is passed?... Maybe it'll be approximately March 15th like last year. I would definitely wait on this return, and see if the software is updated, but all of this is just my opinion.

A

athaureaux6Author

Level 7

Hi, I was looking and it seems the amount of the credit it is based in the model year and the battery capacity. I was playing with some models and numbers and it seems it is like that. Thank you.

PATAX

Level 12

You're welcome

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