My wife and I — married mid 2025 — are looking to buy a used EV using the 25E Used EV Tax Credit. We're likely to use a dealer that specializes in this, so we're assuming we'll transfer the credit at the time of sale.
My wife's AGI (~70k) qualifies for the tax credit, but my income is above the threshold — and thus, our combined exceeds the threshold, too.
Based on reading through other questions, the IRS documentation, and the US Code my understanding is that she would be eligible
– based on her income for this year or the previous year (same #)
– if we file separately instead of jointly
But I want to clarify
– Is this right?
– Are we required to file separately for 2024 to claim the credit, even if last tax year (2023) edit: year we were single?
– When it comes to potential financing, can we use a joint account or even an account in my name even if the purchase is in her name? Basically, to what degree are the names on the IRS paperwork and any financing paperwork required to match in the case of a married couple?
Filing 25E Used EV tax credit for recently married couple
byu/ker_chow_inedibles intax
Posted by ker_chow_inedibles
2 Comments
2023 isn’t able to be used so ideally if your wife filed as single in 2023 she could have bought the vehicle being single and under $75K AGI fairly easily.
The main issue is would married filing separately result in a worse tax outcome than getting a $4K credit on your wife’s taxes.
Edit $4K not $2.5K.
Let me get this straight:
* Wife’s 2024 *modified* AGI: ~$70k
* 2025 marriage
* Husband and Wife combined 2025 *modified* AGI: >$150,000
Based on those three assumptions, you two can file your 2025 tax return as married filing jointly and she can still qualify for the tax credit.
26 CFR 1.25E-1(c) says [https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1/subject-group-ECFRac059cae996b3cd/section-1.25E-1](https://www.ecfr.gov/current/title-26/chapter-I/subchapter-A/part-1/subject-group-ECFRac059cae996b3cd/section-1.25E-1) :
>*Special rule for change in filing status.* If the taxpayer’s filing status for the taxable year differs from the taxpayer’s filing status in the preceding taxable year, then the taxpayer satisfies the limitation in section 25E(b)(1) and paragraph (c)(1) of this section if the taxpayer’s modified adjusted gross income does not exceed the threshold amount in either year based on the applicable filing status for that taxable year.
Basically, that language says she can use her 2024 modified AGI from filing as single to satisfy the single-person $75,000 cap, even if she files as jointly on 2025 tax return.
Make sure the dealer reports to the IRS that your wife is getting the tax credit and make sure the Form 15400 has only her name and information on it.
For general information, read: [https://www.irs.gov/pub/taxpros/fs-2024-26.pdf](https://www.irs.gov/pub/taxpros/fs-2024-26.pdf)
Edit: you two can also file your 2025 tax return as married filing separately, but that’s not required here.