Part II 8a was no, 8b was yes, 8c was no and the rest of Part II 8d through 11 was blank. I’m a dad, husband, Certified Financial Planner, tax practitioner, retired Navy veteran, and writer. I love to write articles on financial topics and IRS tax forms. I especially like to explore financial planning subjects that no one else has tackled before, and help people with financial questions they haven’t found the answers to. You must complete Schedule A for each qualifying vehicle, for which you are trying to claim a clean energy tax credit.

But there is glitch in their system so your tax will never pass the pending status and IRS will never receive it. Ask questions, get answers, and join our large community of Intuit Accountants users. You can confirm the assembly location for your specific vehicle using the VIN Decoder tool and check a list of qualifying Model Year 2022 and early Model Year 2023 EVs.

Income limitations

You’ll file Form 8936 with your federal tax return for the year you put the vehicle into service. So, if you bought and started using your clean vehicle in 2025, you’ll file the form along with your 2025 taxes, which are due in April 2026. If you report the amount of personal use of the vehicle in your employee’s gross income and withhold taxes, then enter ‘100%’ for the percentage of business/investment use. Tentative credit amounts for new clean vehicles are provided to the purchaser by the seller at the time the vehicle is sold, and later forwarded to the IRS.

  • If you are making an elective payment election, enter the IRS-issued registration number for the vehicle in the space provided.
  • Any credit not attributable to depreciable property is treated as a personal credit.
  • If the vehicle is a four-wheel vehicle, make sure you have the correct type of vehicle shown in Part I of the Form 8936 Worksheet.
  • Enter the total credits that you calculated in Part III of all Schedules A that you completed.
  • To check for Schedule A in TurboTax Online click here for the instructions.

To do this, go back to Line 4a and enter the transferred amount. If No, did you transfer the credit amount to the dealer at the time of sale? The IRS has established a pre-filing registration process that must be completed prior to electing payment of the qualified commercial clean vehicle credit. To register, go to IRS.gov/Credits-Deductions/Register-for-Elective-Payment-or-Transfer-of-Credits. 5884, Inflation Reduction Act (IRA) and CHIPS Act of 2022 (CHIPS) Pre-Filing Registration Tool, for more information.

  • For example, a car with a 10 KWh battery would be eligible for a credit of $5,002.
  • But without being able to deduct the $7500 from my tax bill, I am essentially repaying the government for the $7500 that they paid my dealer.
  • When you amend a return, the data resets back to $0 so a payment showing is the amount of the previously issued refund that you will be repaying.
  • Generally, for previously owned clean vehicles (other than qualified fuel cell motor vehicles), the vehicle must have been manufactured by a qualified manufacturer, similar to a new clean vehicle.
  • Further, certain final assembly requirements were added for vehicles purchased after August 16, 2022.

The following additional requirements must be met to qualify you for the credit. The US Department of Energy has compiled a list of vehicles that likely qualified through December 31, 2022. Well, the form is available, yet when I filed last week, the return was rejected due to the form. This link TurboTax Forms Availability  has the forms currently available  in TurboTax it will be updated form 8936 turbotax as the forms become available, so please keep checking there for further releases. I did see form 8936 and schedule A both on my printed copy of my federal return.

Financial Planning Topics

It applies to new vehicles, but it can also be used for some pre-owned ones too. If you don’t file this form, you won’t be able to claim the credit, even if your vehicle qualifies. Note that, except in the case of passthrough entities, the credit may be claimed on only one tax return (including on a joint return filed by two spouses), even if the vehicle is placed in service by multiple taxpayers. The electric vehicle tax credit, also known as the EV tax credit, is a nonrefundable credit meant to lower the cost of qualifying plug-in electric or other “clean” vehicles.

Requirements for clean vehicles placed in service January 1 to April 17, 2023

However, you must be eligible for this tax credit in the first place. This includes meeting the Modified Adjusted Gross Income (MAGI) limitations as outlined in Part I below. If you have comments concerning the accuracy of these time estimates or suggestions for making this form and related schedule simpler, we would be happy to hear from you. See the instructions for the tax return with which this form is filed. If your vehicle qualifies for this credit as well as for the new clean vehicle credit, you can choose which of those credits to claim. An estate or nongrantor trust is treated as having modified adjusted gross income above the threshold amount for any year in which the estate or nongrantor trust is not in existence.

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The dealer or seller of a previously owned clean vehicle must provide a clean vehicle seller’s report to you and the IRS providing information required to claim the credit, including the following. The licensed dealer or seller of a new clean vehicle, including a qualified fuel cell vehicle, must provide a clean vehicle seller’s report to you and the IRS providing additional information required to claim the credit. In Part V, we’ll compute the total tax credit for all qualified commercial clean vehicles, as calculated on Schedule A. You’ll report this transfer on your tax return by using Form 8936 and Schedule A to reconcile your advance payment and credit eligibility. Of course, eligible taxpayers who purchase an eligible vehicle can always choose to wait and claim this tax credit on their tax return. Eligible taxpayers who purchase an eligible vehicle may choose to wait and claim the tax credit on their return instead of transferring a new clean vehicle tax credit.

The value of the new clean vehicle tax credit has been extended through December 31, 2032, adding nine years of availability. After passage of the Inflation Reduction Act, any clean vehicle that was purchased from August 17, 2022, to December 31, 2022, needed to have their final assembly completed in North America to meet eligibility requirements. The credit isn’t refundable if you’re claiming it as an individual, so you won’t be able to get back any credit value in excess of the taxes you owe. Further, you can’t apply any excess credit value to future tax years, meaning you can only claim the full $7,500 value in one year or forfeit the unused balance. If you’re claiming the credit as a business, any excess credit value not used in the year of acquisition can be carried forward to future years.

It seems Intuit and ProSeries are still having issues. If this does not resolve your issue please return to TurboTax Community and we will be happy to help you. The total will be allocated to all partners on Schedule K-1 Box 15 Code AY.

Enter the total credits that you calculated in Part IV of all Schedules A that you completed. Enter the total credits that you calculated in Part III of all Schedules A that you completed. In Line 6, enter the total credit amount that you calculated in Part II of Schedule A (or multiple Schedules A), below.

We strive to be the most user-friendly tax-related platform. Returns are not officially delayed until they exceed the maximum processing time & are considered timely filed based on the time they are timestamped during the e-file transmission process, not when they are accepted. See the article for more How to check for delayed e-file acknowledgements. Keep me updated if you receive an error or rejection number. You can mail those forms separately but include a copy of Form 1040 so the IRS can match the physical forms to the e-filed return. 👉 Join my free weekly tax planning newsletter and get one actionable tip every week to help you reduce your taxes legally and effectively.

EV tax credit: Between August 17, 2022 and December 31, 2022

If you completed the screens for «Energy Efficient Vehicles»‘ it will be reported on Form 8936 which is included as part of your tax return. A Form 8936 and Schedule A (Form 8936) should be included with the tax return you completed using TurboTax. It’s more like you’re telling the IRS that you already received it and confirming your eligibility.

If I use EasyStep and fill in the requested information, the response I receive is that I cannot deduct the $7500 from my tax bill. However, the $7500 was an advance on my refund for 2024, which the dealer received. But without being able to deduct the $7500 from my tax bill, I am essentially repaying the government for the $7500 that they paid my dealer.

The clean vehicle tax credit has a number of stipulations you’ll need to meet to qualify for claiming the two-part credit on a fully electric or plug-in-hybrid electric vehicle placed in service after April 17, 2023. Form 8936 is also used to determine your tax credit value for certain qualified two or three-wheeled plug-in EVs. Can I claim the credit even if the dealership already gave me a discount at the time of purchase? Starting in 2024, and continuing into 2025, some dealerships are participating in a new IRS program that lets you apply the credit right away, at the time you buy the car. It’s basically an advance credit that reduces the amount you have to pay upfront.

‌To do this in TurboTax Desktop, switch to «Forms Mode» and select your forms in the left panel of your screen. Any insight as to how the transfer of the credit is reflected on the 1040? I think the refund actually shown on my 1040 is $3,750 too high, but don’t know for sure.