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Level 2
posted Jan 23, 2025 11:50:35 PM

How do I adjust line 1b of Form 1040, Schedule 2 when I need to repay a Used Clean Vehicle Tax Credit and attach Schedule A (Form 8936)? The software won't let me.

We mistakenly transferred the Used Clean Vehicle Credit at the time of sale thinking we would qualify. We just went over the income limit and the IRS says we have to file Form 8936 with our return but TurboTax won't let us since our income disqualifies us from the credit.

0 5 6841
5 Replies
Level 1
Jan 27, 2025 7:27:24 PM

I got the same question, please let us know if you find a solution. I'm using the web version of Turbotax. Thanks!

Level 2
Jan 30, 2025 3:21:45 AM
Expert Alumni
Jan 30, 2025 3:54:27 PM

We are aware of the issue and developers are working to correct the issue.

@iatax2025 

Level 2
Jan 30, 2025 9:44:41 PM

@iatax2025 I did eventually find a solution, although it's a stupid one. I called support until I found a representative who upgraded me to TurboTax Deluxe Desktop. Unfortunately it still has the same issue BUT if you switch to forms mode you can open Form 1040 Schedule 2 and double click on Line 1b. That will open up Form 8936 and Form 8936 Schedule for you to fill out yourself.

 

In my mind this defeats the whole purpose of paying for TurboTax in the first place. If I wanted to fill out the forms myself, I would have just done that. I'm not using TurboTax next year.

Expert Alumni
Feb 2, 2025 7:04:56 PM

We are aware that some of our customers are having an issue with the EV credit payback reporting when the credit was transferred to the dealer.

 

Please click here to sign up to receive an email notification when this issue has been resolved.

 

@iatax2025