How do you create tax liability for tax credits?

This whole thread was about the "old" tax credits that were abolished the moment Biden signed the new Inflation Reduction Act in August 2022.

The "new" credits are different with different rules. To avoid confusion, please move any discussion about the "new" credits to a new thread, and let this old-credit thread die a quiet death.

Maybe. Poster's location is London, so not relevant to U.S. taxes.

 

The tax credit remains nonrefundable without enough tax liability on any purchases this year.

 

Pull out last year's forms, the 2022 Form 1040. Look at line 24. That is your Total Tax. This is the number that relates to any tax credit, but you don't have your 2023 data yet which you'll need for the 2023 tax credit. It does not matter how much you've had withheld, how much you might have to pay when you file, nor how much refund you might get. Your 2023 Form 1040 might have the Total Tax on a different line number, but it will be there. The tax credit might give you a big refund check. The Roth IRA conversions mentioned above are a good idea if one needs to increase their Total Tax to get more of this tax credit. The electric car tax credit is non-refundable. That means use it or lose it. You can't carry any over to next year. If you don't have enough Total Tax to get the full credit, that reduced credit equal to your Total Tax is what you get. You'll get a big refund check.

Here are the new complications:
Credits for New Clean Vehicles Purchased in 2023 or After | Internal Revenue Service

 

it's all moot after 12/31, happy new year!