Binding Agreement: Am I Eligible for 7500 if income >= 150k?

[adam_g]

I signed the binding agreement in 2022 and took delivery in Nov 2023. In 2022 the rules were that there was no income cap (as I understand it) for the 7500 credit (see here). My gross income is over 150k, which is the limit for single individuals w/ no dependents in 2023 (see here). Which of these applies to me if I signed the binding agreement? Obviously, I'd rather get that 7500, but not sure if I'm eligible. Thanks ahead of time for anyone who may know.

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[Donald Stanfield]

To use the 2022 tax credit, you have to take it off of your 2022 taxes. You cannot claim it on 23's taxes

 

[adam_g]

So does that mean I am eligible? Not a tax accountant

 

[Warmoth]

The income test you are referring to does not apply if you use the binding agreement by amending the '22 tax return.

edit: if you file for the '23 tax return, then the binding agreement does not apply, and the income test is applicable.

 

[adam_g]

The thing is, Rivian's binding agreement site points to form 8936 which explicitly has such a 150k limit in it. Is there an older 8936 I should be using?

 

[COdogman]

The income restriction only started in 2023. The original binding agreement was for 2022.

 

[Dark-Fx]

The thing is, Rivian's binding agreement site points to form 8936 which explicitly has such a 150k limit in it. Is there an older 8936 I should be using?

Use the form for 2022 tax year...

 

[vandy1981]

Binding agreements use the pre-IRA credit rules which don't have income or MSRP limits:

https://rivian.com/support/article/...EV-tax-credit-using-a-binding-order-agreement

 

[adam_g]

Ahh, ok, thanks @Dark-Fx.

I think the Rivian site should point to this form instead for my case: Form 8936 (Rev. January 2022) (irs.gov)

 

[Dark-Fx]

Ahh, ok, thanks @Dark-Fx.

I think the Rivian site should point to this form instead for my case: Form 8936 (Rev. January 2022) (irs.gov)

Yeah, just a problem with the IRS re-using their URL every year.

 

[harkco]

Agree with others - just amend your 22 return.

 

[shamoo]

As others said, no limit during the time period referenced for the binding sales contract.

I got the full $7500 when I amended my 2022 return.

 

[vandy1981]

So does that mean I am eligible? Not a tax accountant

You are eligible if you paid more than $7500 in taxes in 2022 and signed a binding agreement. If you paid less than $7500, you will only get the paid amount since it was a non-refundable tax credit before the IRA went into effect.

 

[Moka]

I have done a lot of research on this for my accountant and here is what I found on the IRS site:
Credits for New Electric Vehicles Purchased in 2022 or Before | Internal Revenue Service (irs.gov)
and then this:
Manufacturers and Models for New Qualified Clean Vehicles Purchased in 2022 and Before | Internal Revenue Service (irs.gov)

With this information and the 2022 Form 8936 you can then file an amended 2022 return and get the full $7500 credit. At least that is what I am claiming

 

[JayinNJ]

The thing is, Rivian's binding agreement site points to form 8936 which explicitly has such a 150k limit in it. Is there an older 8936 I should be using?

You must amend your 2022 return and use that form. No income limit.

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