Did you know there's a tax credit for installing a charger and/or wiring?

[the golden eel]

Do any tax experts want to chime in on if I can take this credit on my 2022 taxes or if I have to wait for 2023 taxes?

I had the charger installed in December. Paid for the charger in December, electrician work was done in December, but I received the bill from the electrician in 2023 and paid in 2023.

For sure the cost of the charger I can claim this year, but wondering about the electrician since the work was done in 2022 but paid in 2023.

One of the requirements in the IRS instructions states the following

• You placed the refueling property in service during your tax year.

That leads me to believe I can claim it when I do my taxes next month. The invoice shows the work date in December.

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[RickMachE]

Correct.

 

[Caramel Mach-e-ato]

And then apply for the 30% tax credit on any remaining cost.

exactly.

 

[ChuckA]

I use H&R Block software and they don’t load form 8911 (at least last year they didn’t). Any suggestions?

 

[macchiaz-o]

I use H&R Block software and they don’t load form 8911 (at least last year they didn’t). Any suggestions?

Ask them when they'll get around to loading it and wait until then to file. Or, switch providers.

 

[ElectrikPony]

You can do both. Or more...

I bought a JuiceBox charger because it was one of 2 my utility company would give me a $500 rebate for.

I also applied for the 30% tax credit.

$650 charger
$1,100 electrician
=====
$1,750 total
- $500 rebate
=====
$1,250 x 30% tax credit = $375

Net cost to me of both the charger and electrician = $875

But wait, there's more.

My utility pays me $100 a year ($50 at the start, $50 at the end) to let them control charging 1/2 dozen or less times a month, basically a "don't charge for 2 hours" or "please charge for 2 hours". I'm in year two, so I'm down to $675 net cost.

jellous of your utility company. Northern California has PG&E. They offer no rebates. Have the highest rates. The list of death and negligence they are responsible would fill pages of this forum.

 

[the golden eel]

I use H&R Block software and they don’t load form 8911 (at least last year they didn’t). Any suggestions?

Thanks for sharing this. I've used H&R Block software for years now. This is a big bummer.

 

[ChuckA]

Thanks for sharing this. I've used H&R Block software for years now. This is a big bummer.

I’ll send them a message. Maybe it’s in 2022 version.

 

[daemonic3]

I was happy when I read that the IRA was bringing the home install credit back (aka section 30C) but then found info about how it is income capped and zip code restricted. Basically, incentive to reduce barriers for lower income folks to enter the EV market.

I'll certainly be filling it out in turbotax but we'll see if it flags any restrictions in the end!

 

[RickMachE]

I was happy when I read that the IRA was bringing the home install credit back (aka section 30C) but then found info about how it is income capped and zip code restricted. Basically, incentive to reduce barriers for lower income folks to enter the EV market.

I'll certainly be filling it out in turbotax but we'll see if it flags any restrictions in the end!

No, it's not. That is for commercial installations.

 

[athomas43]

I believe reading on reddit though that from 2023 onwards, there are many more restrictions, but installing in 2022 had essentially none except the credit limit. Please look at that too before applying.

 

[Caramel Mach-e-ato]

I’ll send them a message. Maybe it’s in 2022 version.

Turbo Tax is still in the process of updating its programs. The 8911 currently reflects last years framework from 2021. They state that it’s not ready yet as they catch up to the last guidance from IRS. I would imagine that Block is the same. Likely updated forms/capacities to input probably come in mid-January is my guess.

 

[the golden eel]

I looked last night at H&R Block website and saw that they don't support 8911 as of now. I'll be contacting them today to see if we can get that moving.
I'd rather not switch to someone else, but I'm not leaving hundreds of dollars on the table.

 

[RickMachE]

No matter the year in which you file for the credit, I believe that you have to have a tax liability to get it. So if you are already expecting a refund from your 2022 taxes, you won't get the credit. I believe that is is "non-refundable."

Whether you are getting a refund or not is irrelevant. The tax credit gets subtracted from your tax liability, then any withholding or estimated tax payments get applied. So your refund will be bigger.

 

[RickMachE]

Yes, but credits just reduce the liability, so if you already over-withhold, you will have no liability to subtract a credit from. If you are already expecting a refund because of your regular withholding rate/amount on each paycheck, you can't use a non-refundable credit to then reduce a liability at the end of the year (after withholding is taken out) that does not exist. If you are lucky enough to have not withheld anything on each check, or you pay estimated taxes on a quarterly basis (typically not true for the the normal 9-5 folk who get a bi-weekly paycheck), then you may be able to utilize the credits properly to reduce your liability (assuming you are not phased out because of your income if that is a consideration for the credit). In 2023 the income limit is $150K on your AGI for a single filer, $300K for joint filers.

Refundable vs. non-refundable classification is a big deal, and the feds don't explain that to us when they tout these tax credits. They just say that everyone gets the money back, which is not true. Most people don't plan to adjust their withholding to purchase an EV. But if you do it right, you may be able to benefit from the credits.

This is a fundamental misunderstanding. Nearly everything you have stated is absolutely wrong.

Withholding has NOTHING to do with it. Estimated tax payments have NOTHING to do with it.

Example:

Bob has a tax LIABILITY of $8,000. Bob had $10,000 withheld, so he expects a $2,000 refund.

Bob buys an EV with a $7,500 tax credit. $8,000 - $7,500 = $500 remaining tax liability. Bob gets a refund of $9,500 ($10,000 - $500).

Mary has a tax LIABILITY of $3,000. She had $5,000 withheld, so she expects a $2,000 refund also.

Mary buys an EV. She only can use $3,000 of the $7,500 tax credit, but she now gets a $5,000 refund of her entire withholding.

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