Is the following an accurate assessment?
The tax credit is not refundable, which means you must have federal tax due to take advantage of it. If your tax due is less than the credit amount, you can only claim the credit up to the amount of your tax due. You cannot use excess amounts of the credit on future- or previous-year tax returns.
Does this means in order to advantage of the Whole $7500 Tax Credit you need to owe taxes of at least $7500 (in excess of what was taken out of your pay already ) for the year you purchased your qualified Electric Vehicle?
Example:
If you still owe $2000 at the end of the year in Federal Taxes for 2023 you only get a $2000 credit. The rest of the credit is lost.
The tax credit is not refundable, which means you must have federal tax due to take advantage of it. If your tax due is less than the credit amount, you can only claim the credit up to the amount of your tax due. You cannot use excess amounts of the credit on future- or previous-year tax returns.
Does this means in order to advantage of the Whole $7500 Tax Credit you need to owe taxes of at least $7500 (in excess of what was taken out of your pay already ) for the year you purchased your qualified Electric Vehicle?
Example:
If you still owe $2000 at the end of the year in Federal Taxes for 2023 you only get a $2000 credit. The rest of the credit is lost.