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Category Taxes & Contributions

Filing Status

Adjusted Gross Income ($) Your total AGI from Form 1040, line 11

Estimated Federal Tax Liability ($) Non-refundable credits cannot exceed this amount

Children Under 6

Children Ages 6–17

Earned Income ($) Wages + self-employment income for EITC

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About

The Build Back Better framework and its enacted successor, the Inflation Reduction Act of 2022, restructured federal tax credits across energy, healthcare, and family policy. Miscalculating eligibility thresholds risks leaving thousands of dollars unclaimed. Credits phase out linearly once Adjusted Gross Income (AGI) exceeds statutory caps. For example, the Clean Vehicle Credit under §30D zeroes out above $150,000 AGI for single filers, while the expanded Child Tax Credit reduces by $50 per $1,000 of excess income. This calculator applies the actual phase-out formulas, MSRP caps, and income limits codified in the Internal Revenue Code as amended.

The tool approximates federal credits only. State-level incentives, carryforward rules, and alternative minimum tax interactions are not modeled. Consult IRS Publication 972 and Form 8936 for binding guidance. Pro tip: credits are non-refundable unless explicitly noted (the CTC expansion included a refundable portion). Verify your filing status carefully. Married Filing Separately triggers different thresholds for nearly every provision.

Formulas

The Child Tax Credit phase-out reduces the credit linearly above the applicable AGI threshold:

CTC = max(0, CTC_max − $50 × AGI − T1,000)

Where CTC_max = $3,600 per child under 6, $3,000 per child aged 6 - 17. T = income threshold ($75,000 single, $150,000 MFJ). The reduction rate is $50 per $1,000 of AGI above T, computed with ceiling division.

The Clean Vehicle Credit under §30D:

{

$7,500 if AGI ≤ T_EV and MSRP ≤ MSRP_cap$0 otherwise

Where T_EV = $150,000 (single) or $300,000 (MFJ). MSRP_cap = $55,000 for sedans, $80,000 for SUVs/trucks/vans. The credit splits into $3,750 for critical mineral sourcing and $3,750 for battery component requirements.

Residential Clean Energy Credit (§25D):

Credit = 0.30 × C_{solar+battery+geothermal}

Where C is qualified expenditure. No income limit. No annual cap. Applies to solar panels, solar water heaters, battery storage (≥ 3 kWh), geothermal heat pumps, and small wind turbines.

Energy Efficient Home Improvement (§25C) has an annual aggregate cap of $3,200, split into subcategories: $1,200 for insulation/doors/windows and $2,000 for heat pumps/biomass stoves. Credit rate is 30% of cost within those caps.

Reference Data

Credit / Provision	Max Amount	AGI Phase-Out Start (Single)	AGI Phase-Out Start (MFJ)	IRC Section	Refundable?
Child Tax Credit (per child < 6)	$3,600	$75,000	$150,000	§24	Partially
Child Tax Credit (per child 6-17)	$3,000	$75,000	$150,000	§24	Partially
Child & Dependent Care Credit	$4,000 (1) / $8,000 (2+)	$125,000	$125,000	§21	No
Clean Vehicle Credit (New EV)	$7,500	$150,000	$300,000	§30D	No
Used Clean Vehicle Credit	$4,000	$75,000	$150,000	§25E	No
Residential Clean Energy Credit	30% of cost	No limit	No limit	§25D	No
Energy Efficient Home Improvement	$3,200/yr	No limit	No limit	§25C	No
Premium Tax Credit (ACA)	Varies by FPL	400% FPL cap removed	400% FPL cap removed	§36B	Yes
EITC (no children)	$1,502	$11,610	$17,550	§32	Yes
EITC (1 child)	$3,618	$19,520	$25,470	§32	Yes
EITC (2 children)	$5,980	$19,520	$25,470	§32	Yes
EITC (3+ children)	$6,728	$19,520	$25,470	§32	Yes
Heat Pump / HVAC Credit	$2,000/yr	No limit	No limit	§25C(b)(2)	No
Insulation & Doors/Windows	$1,200/yr	No limit	No limit	§25C(b)(1)	No
Home Energy Audit Credit	$150	No limit	No limit	§25C(b)(5)	No

Frequently Asked Questions

The expanded CTC first reduces by $50 per $1,000 above the lower threshold ($75,000 single / $150,000 MFJ) until it reaches the baseline $2,000 per child. A second phase-out then applies at the original TCJA thresholds ($200,000 single / $400,000 MFJ), reducing the remaining $2,000 credit by the same $50/$1,000 rate. Both reductions use ceiling rounding on the excess income divided by $1,000.

Yes. They are separate IRC sections with independent caps. §25C covers envelope improvements (insulation, windows, HVAC) up to $3,200/year. §25D covers solar, geothermal, and battery storage at 30% with no annual dollar cap. A homeowner installing solar panels and a heat pump in the same year claims both. The heat pump falls under §25C (up to $2,000), while solar falls under §25D (30% of full cost).

No. The statute references MSRP (manufacturer's suggested retail price), not the transaction price. If the MSRP exceeds $55,000 for sedans or $80,000 for SUVs/vans/trucks, the credit is zero regardless of what you paid. Verify the MSRP on the vehicle's window sticker (Monroney label), not the dealer invoice.

Most IRA energy credits (§25C, §25D, §30D) are non-refundable - they reduce your federal tax liability but cannot generate a refund below zero. The expanded CTC had a refundable component (up to $1,400 per child via Additional Child Tax Credit). The EITC is fully refundable. The Premium Tax Credit under §36B is also refundable. Non-refundable credits that exceed your liability are generally lost unless carryforward rules apply (§25D allows carryforward; §25C does not).

Under §25D(c), unused credit may be carried forward to the next tax year. This is one of the few personal energy credits with carryforward provision. However, §25C has no carryforward - unused amounts are forfeited. Plan installations across tax years if your liability is limited.

MFS dramatically restricts eligibility. The CTC phase-out threshold drops to $75,000 (same as single). The EV credit AGI cap is $150,000. The EITC is completely unavailable under MFS. The Premium Tax Credit is also generally unavailable for MFS filers unless you meet the domestic abuse exception. MFS is almost always suboptimal for credit maximization.