Will Form 8936 Instructions update Line 18 MAGI table for 2023 & 2022 Forms 1040, or stick with 2022/2021 for EV credit?

So I'm trying to plan ahead for my tax filing next year since I bought an electric vehicle. Looking at the current Form 8936 Instructions, the MAGI table on Line 18 specifically refers to years 2022 and 2021. I'm wondering if when I file my taxes next year, will the updated instructions for that filing season change to reference 2023 and 2022 Forms 1040 (so I can choose the lesser MAGI from either year for the EV credit calculation)? Or is there something special about the 2022/2021 reference that will stay fixed for several years because of the new EV credit rules from the Inflation Reduction Act? Basically I'm trying to figure out if I should be comparing my 2023 income with 2022 for planning purposes, or if they're going to keep referencing the 2021 form even for future filing years. Thanks for any insights!

0 coins

18 comments

Ethan Moore

•8M

The Form 8936 Instructions for Line 18 regarding the MAGI table should indeed be updated each tax season. The IRS typically updates all tax forms and their instructions annually to reflect the appropriate tax years. So when you file your 2023 tax return in 2024, the revised instructions should reference tax years 2023 and 2022 for the MAGI comparison. The ability to use the lesser of your current or prior year MAGI for the EV credit calculation is an ongoing feature, not something specific to just 2022/2021. This provision helps taxpayers who might have a temporary spike in income that could reduce or eliminate their credit eligibility.

0 coins

Ethan Moore

•8M

The Inflation Reduction Act did make significant changes to the EV credit, including new requirements about battery components and critical minerals, as well as final assembly in North America. However, these changes don't affect how the MAGI limitation works or the fact that you can use either current or prior year MAGI. The MAGI comparison feature is a separate mechanism that should continue regardless of the other new requirements. The IRS consistently updates the referenced tax years in forms and instructions each filing season to reflect the appropriate years for all calculations.

0 coins

StarSurfer

•8M

After reading through all this EV credit confusion last year, I found an amazing tool that helped me sort everything out. Check out https://taxr.ai - it's basically an AI tax assistant that analyzes all these forms and instructions for you. When I was confused about whether my vehicle qualified and how the MAGI limitations worked, I uploaded the Form 8936 instructions and my tax documents, and it explained everything in plain English. It was able to tell me exactly which MAGI to use from which year and calculated the potential credit amount based on both options. Saved me hours of reading through the instructions trying to figure it out myself.

0 coins

StarSurfer

•8M

It works with any tax question you have, not just EV credits. You can upload the specs of your vehicle and it'll check against the latest IRS qualified vehicle list to tell you if it meets the North American assembly requirement and the battery/mineral requirements. The system is updated regularly with the latest IRS guidance and rule changes. That's actually one of the best features - it stays current with all the changes to the EV credit rules, which as you mentioned, have been changing frequently. It's way more up-to-date than most articles you'd find online.

0 coins

Andre Moreau

•8M

Following up on my skepticism about AI tax tools - I decided to try taxr.ai after struggling to understand if I could use my anticipated lower 2023 MAGI for the EV credit calculation. I have to admit, I was impressed. I uploaded my 2022 return and some 2023 income projections, and it immediately explained that I should be able to use the lesser of the two years when the form updates for the 2023 filing season. It even highlighted exactly where in the Form 8936 instructions this provision is mentioned and explained how the IRS typically updates the referenced tax years annually. Definitely saved me from making a planning mistake based on the current form's reference to 2022/2021.

0 coins

Zoe Christodoulou

•8M

If you're frustrated trying to get answers about EV credits from the IRS, I totally get it. I spent WEEKS trying to call them about this exact MAGI question for Form 8936. Finally found https://claimyr.com and their service actually got me through to a real IRS agent in under an hour! You can see how it works here: https://youtu.be/_kiP6q8DX5c The agent confirmed that yes, the instructions will be updated each year to reference the current and prior year for the MAGI calculation. So for 2023 filing (which we'll do in 2024), you'll be able to use either 2023 or 2022 MAGI, whichever is lower. This was super helpful for my tax planning since my income fluctuates year to year.

0 coins

Zoe Christodoulou

•8M

The service works by holding your place in the IRS phone queue and then calling you when an agent is about to answer. It uses a combination of automated dialing technology and their knowledge of IRS call patterns to get through the system more efficiently. They're not doing anything magical - they're essentially just waiting in line for you and then getting you on the call when it's your turn. What makes it different is they have the technology to manage multiple calls and know the best times to call. I was skeptical too, but it actually worked. I got a call back in about 45 minutes and was connected to an IRS agent who answered my question about the Form 8936 MAGI table.

0 coins

Mei Chen

•8M

Well I'll be damned. After posting that skeptical comment earlier, I decided to try Claimyr just to prove it wouldn't work. To my complete shock, I got a call back in 37 minutes connecting me to an IRS representative. I asked specifically about the Form 8936 Line 18 MAGI table updates, and they confirmed that yes, for the 2023 tax year filing (which happens in 2024), the instructions will reference 2023 and 2022 Form 1040 line 11. They explained that this particular provision wasn't tied to the Inflation Reduction Act changes but is a standing feature of how the credit works. Honesty still can't believe I actually got through to a human at the IRS after months of trying on my own.

0 coins

CosmicCadet

•8M

I work at a dealership and this question comes up A LOT with customers buying EVs. The MAGI limitation has been confusing everyone. From what our tax consultant told us, the instruction will indeed update each year to reference the current and prior year. For 2023 returns, you'll be able to use 2023 or 2022 MAGI, whichever is lower. The 2022/2021 reference in the current instructions is just for the 2022 tax year filing. It's standard practice for the IRS to update these year references on their forms and instructions. The bigger issue people should worry about is whether their vehicle meets all the other new requirements for the credit.

0 coins

CosmicCadet

•8M

Yes, that's correct about leasing. When you lease an EV, the leasing company (usually the manufacturer's financing arm) is technically the owner of the vehicle, so they receive the tax credit directly. They often pass this benefit on to the customer in the form of reduced lease payments or a capital cost reduction. In these cases, the MAGI limits don't apply to you as the lessee because you're not claiming the credit directly. This has indeed become a popular workaround for higher-income customers who wouldn't qualify for the credit if they purchased. Just make sure the leasing company is actually passing along the credit value to you in the lease terms.

0 coins