Question

Desiree is single. Her modified adjusted gross income is $70,000. She purchased a previously-owned electric vehicle on January 15, 2023 for $20,000 from a dealer. The vehicle meets all the requirements for the Previously-Owned Clean Vehicle Credit. What is the maximum credit amount Desiree may qualify for on her 2023 tax return?

$1,000
$4,000
$6,000
$7,500

Answer 1

Desiree may qualify for a maximum credit of $4,000 on her 2023 tax return. The Previously-Owned Clean Vehicle Credit allows taxpayers to claim a credit equal to 30% of the sale price of the vehicle, up to a maximum credit of $4,000. Since Desiree purchased a previously-owned electric vehicle that meets all the requirements for the credit, she may qualify for the full credit amount.

So there for the answer is b) $4,000