EV Tax Question

[z335is]

So quick question for you guys - my wife leased an EV in 2015 and we subsequently claimed (and received) the EV tax credit on our 2016 taxes. So when going through our taxes this year, I realized that we should not have claimed the credit, as technically it should have gone to the leasing company. That being the case, should I file an amendment for last year or just let it ride at this point? Has anyone been in a similar situation?

Thanks in advance...

[FriedPiston]

As you said, you don't qualify for the federal EV credit with a lease, but may qualify for the state tax incentive. This is unless you live in CA where the state EV tax incentive has been exhausted, and is currently only limited to low income buyers.

The dealer you acquired the lease from would be foolish not to claim the federal EV credit, so it will only be a matter of time (2-4 years) for the IRS to spot the discrepancy based on the VIN # provided.

Since you've already received the credit, your options would be:

1. Wait for the IRS to come after you, and repay the unqualified EV tax credit + interest.

2. Make an amendment to your 2016 return, and return the credit back + interest

Personally, I'd go with #1 just in case the dealership failed to claim the vehicle. As with everything tax related, it is often best to consult with a tax professional for the most accurate guidance.

[blinkme323]

It's possible that they never notice, but personally it's not something I would want hanging over my head (especially with a family).