I went back to review the video, to see what you were referring to at 10:55. It appears that this section is discussing the tentative credit on Line 9 of Schedule A. When I reread the instructions, here is what they had to say about Line 9: Tentative credit amounts for new clean vehicles are provided to the purchaser by the seller at the time the vehicle is sold, and later forwarded to the IRS. I don't see any references back to a prior year Form 1040 in the instructions. Is this what you were asking about, or were you thinking of something else?
27:09 I apologize, I commented on the wrong video, but here is the section where my confusion is about this form. If the year that has the smallest yearly income (let's say it was 2022) that qualified me for this tax credit, wouldn't I report the Taxes & Credit number on line 18 from that same 1040 (instead of reporting that info from the 2023 form)?
@@rrogersyt I think I understand your question. This is a new tax credit beginning in 2023 (replacing another, similar tax credit). According to the instructions, you can use the income figures from 2023 *or* 2022 for purposes of determining whether you qualify for the tax credit in the first place. However, once you qualify (under either year), the instructions seem to refer to the current tax year only. I could be mistaken, but I don't see anything in the form instructions that tie the *tax liability* back to either 2022 or 2023. The only reference I see for 2022 is using the MAGI figures for purposes of determining credit eligibility in the first place. This would cover people who purchased the car in tax year 2022 (August 16 or later), but did not have a chance to claim it on their tax return. I have not yet seen 2024's version of this form yet, but I imagine this will be eliminated, and hopefully lessen the confusion.
