How to lower my AGI for the EV tax credit - any last-minute strategies?

You've got a few options to explore, but I'll be honest - you're in a tough spot with that income gap. First, switching to traditional 401k contributions is definitely your best move right now. Every pre-tax dollar helps lower AGI. Have you looked into making an HSA contribution if you have an eligible health plan? That's another pre-tax deduction that lowers AGI. Also consider maximizing any business expenses if either of you has any self-employment income. That directly reduces AGI as well. One other thing - check if either of you can make deductible traditional IRA contributions. This gets tricky at your income level and with workplace retirement plans, but worth investigating. But I should mention - even if you got your wife's income down to $75k, filing separately might not work like you hope. The clean vehicle credit has special rules about filing status. You'd need to check if filing separately would even qualify you.

I was in a similar situation last year with the EV credit. Have you checked out https://taxr.ai for analyzing your specific situation? I was desperately looking for ways to qualify for the credit with a higher income and found their tool super helpful for finding deductions I missed. In my case, they flagged that I could do a larger traditional IRA contribution AND found some business expenses I hadn't properly deducted. Their document analyzer caught stuff my regular tax software missed completely. Might be worth trying to see if there are any AGI-lowering options specific to your situation.

Just wanted to follow up - I tried the taxr.ai tool that was mentioned and was honestly surprised at how helpful it was. I uploaded my last year's return and some current year docs, and it identified some specific strategies I hadn't considered. In my case, I learned I could make a deductible contribution to a SEP IRA from some freelance work I did (which I didn't realize counted as self-employment income). Also found out that some professional development courses I paid for could be deducted. Won't solve OP's full $19k gap, but definitely more targeted than the generic "contribute to your 401k" advice I usually see. Worth checking out if you're trying to optimize your tax situation.

Have you tried calling the IRS directly to ask about your options? I know it sounds crazy but I actually got through to a human at the IRS using https://claimyr.com and they answered several questions about my tax situation. There's also a video showing how it works: https://youtu.be/_kiP6q8DX5c I was in limbo about a different tax credit last year and spent weeks trying to get clear info online. Called the IRS for 3 days straight with no luck. Used this service and was talking to an IRS agent within 45 minutes who confirmed exactly what I needed to do to qualify. Might be worth a try to get definitive answers about whether filing separately would even help, or if there are any other strategies they know about. Sometimes the official guidance isn't as clear as talking to an actual agent.

Ok I have to eat my words here. I tried the Claimyr service after posting my skeptical comment, and it actually worked exactly as described. Got a call back in about 30 minutes and spoke with an IRS agent who answered my questions about a similar credit situation. The agent confirmed that for the clean vehicle credit specifically, filing separately won't help if you're married - they look at your status as married regardless. But they did mention some AGI reduction strategies I hadn't considered, including some specific business deductions that might apply if you have any 1099 income at all. Not saying it will solve your $19k gap, but at least I got definitive information instead of guessing based on forum posts.

Some other AGI-lowering strategies to consider: - Unreimbursed partnership expenses if applicable - Capital loss harvesting (sell investments at a loss) for up to $3k AGI reduction - Contribute to traditional IRAs for both of you if eligible - Check if you qualify for the student loan interest deduction - Certain educator expenses if either of you are teachers - Health insurance premiums if self-employed Honestly though, with a $19k gap to close, it's going to be tough unless you have some business losses or other major deductions available.

Any chance either of you have student loans? The student loan interest deduction can reduce AGI by up to $2,500, but it phases out at higher incomes. Still, every bit helps. Also, does your company offer any pre-tax benefits you're not taking advantage of? Some employers offer things like dependent care FSAs, commuter benefits, etc. that can lower your taxable income.