Will Form 8936's Line 18 MAGI table update for 2023/2022 tax years or stay at 2022/2021 for the EV credit?

The Form 8936 instructions for the MAGI table on Line 18 will indeed be updated each year to reflect the current and prior tax years. This is standard IRS practice for forms that reference specific tax years. When you file your 2023 tax return in 2024, the updated Form 8936 instructions should reference tax years 2023 and 2022, allowing you to use the lesser MAGI from either year. The reference to 2022/2021 in the current instructions isn't due to the EV credit changes specifically, but rather reflects the normal year designations for this filing season.

Hey everyone, just wanted to share something that might help! I was dealing with the exact same confusion about the Form 8936 MAGI table and other tax documents when I found https://taxr.ai - it's been a lifesaver for me when trying to understand these complicated tax forms. I uploaded both the current Form 8936 instructions and some older versions, and it analyzed the patterns of how these forms get updated year to year. Turns out this is a standard rolling update the IRS does with most forms, not something specific to the EV credit changes. The tool explained exactly how the MAGI comparison works across different tax years and what to expect for the 2023 filing.

Just wanted to follow up about that taxr.ai site someone mentioned earlier. I was super skeptical at first (as you could probably tell from my comment), but I decided to give it a try with my EV credit questions. Honestly, it was surprisingly helpful! I uploaded last year's 1040 and the specs for the EV I'm thinking about buying, and it broke down exactly how the MAGI table would apply to my situation for 2023 filing. It confirmed that yes, the table will update each year (2023/2022, then 2024/2023, etc.), and it calculated my potential credit based on both years' income since I had a significant income change. Saved me from making a timing mistake that would have cost me a few thousand in credits!

If anyone is struggling to get answers directly from the IRS about Form 8936 and the EV credit changes, I had a surprisingly good experience using https://claimyr.com to actually get through to an IRS agent. I'd been trying for weeks to get clarity on this exact MAGI table question and whether it would update for 2023/2022. I was honestly ready to give up after sitting on hold for hours multiple times, but then I tried this service. Within about 15 minutes, I was talking to a real IRS representative who confirmed that yes, the MAGI table will update annually to reflect the current and prior year. You can check out how it works here: https://youtu.be/_kiP6q8DX5c The agent also explained that while the other aspects of the EV credit have specific timelines from the Inflation Reduction Act, the MAGI comparison feature is a standard element that rolls forward each year.

I need to eat my words about Claimyr. After posting that skeptical reply, I decided to try it myself since I also had questions about the EV credit that weren't clearly addressed in the Form 8936 instructions. Used the service yesterday afternoon, and to my complete surprise, I got a call back within 45 minutes with an IRS representative on the line. I asked specifically about the Line 18 MAGI table and whether it would update annually. The agent confirmed it will indeed update to show 2023/2022 when filing next year, and then 2024/2023 the following year, etc. The agent also mentioned that while the IRS is still finalizing some aspects of the new EV credit program, the MAGI calculation method (using either current or prior year) is a standard feature that will continue to roll forward.

Just a heads up from someone who just went through this process - the MAGI comparison (using either current or prior year) has been a feature of several tax credits for years and always updates annually. I used to claim the Retirement Savings Contribution Credit which has the same option. One thing to keep in mind: when you're planning for an EV purchase, remember that it's not just about the MAGI table updating. The actual income limits for the EV credit ($300k MFJ, $150k single) are fixed until 2032. So even though the years referenced in the MAGI table will update, those threshold amounts won't change for almost a decade.

I just realized something that might be confusing people about Form 8936. There are actually TWO different credits now - the Clean Vehicle Credit (Section 30D) and the Previously-Owned Clean Vehicle Credit (Section 25E). They have different forms, different rules, and different MAGI limits. For new vehicles (Section 30D using Form 8936), the MAGI limits are $300k MFJ/$150k Single. For used vehicles (Section 25E using Form 8936), the MAGI limits are $150k MFJ/$75k Single. But both should use the rolling "current year or prior year" MAGI comparison table when calculating eligibility!