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Level 2

Question

EV Credit for Tesla 3

Forum|Forum|6 years ago
February 15, 2020
6 replies
0 views

After entering our info, TurboTax is giving us the full $7500 EV credit for purchasing a Tesla 3 in September. What I see elsewhere online is that Tesla EVs are NOT being given full credit and that a September purchase would be eligible for a credit up to $1875. Would love the full credit; would not love an audit. Do I trust TurboTax on this?

DianeC958

Level 12

Yes the tax credit for purchasing an Electric Vehicle is $7500 for 2019.

Link to Filing Tax Form 8936

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

luigi65

Level 2

I am in the same situation, the interview does not ask for what the credit should be. TTax computes and allows full credit of $7500.00 when the qualifiers of KWH are present.

Will Intuit/Turbo Tax cover any issues/penalties should IRS reject returns or charge back monies?

What guarantee is there the computation of 7500.00 credit is 100% accurate?

bwergeles

Level 7

The Qualified Plug-in Electric Drive Motor Vehicle Credit or Form 8936 is not calculating correctly. The tentative credit is showing as too high.

This issue is projected to be fixed by 02/21/2020.

You can sign up here to receive email notifications when updates related to this issue become available.

Please see this TurboTax Help Article for more information.

@Playcool

@luigi65

Anonymous_

Level 15

@Playcool wrote:

Do I trust TurboTax on this?

No, because TurboTax will give you the full credit ($7,500). Use the link below for accurate figures.

https://www.fueleconomy.gov/feg/taxevb.shtml

rprewer

Level 2

I had this problem too. I bought my Tesla in September 2019. When I first entered it, the 7500 came up but it allowed me to key in $1875. Later, when I went back to file my taxes, it further reduced the 1875 by 25% and I didn't realize it until it was already submitted. I'm guessing the form was updated between when I first entered it and filed it. I'm waiting to see if the IRS accepts it or not, as that was the recommendation when I called Turbotax. I wish there was more help offered, since this was clearly a glitchy issue on their end.

sgottscho

Level 2

It looks like the calculation is fixed, but my return was rejected with the same error code. When is this going to be fixed?

falcon5244

Level 2

Same here. Very annoying.

Instructions:

1. Update Turbo Tax on the 20th to correct 8936 form. Check.

2. Resubmit. Check.

3. Rejected again for same reason. Fail.

ClarityOwner

Level 2

My tax forms were rejected and the math shouldn’t matter for my credit because I bought a Honda Clarity Plug In and they haven’t even sold nearly enough to start the phase out process so I get the $7500 credit for sure. Yet mine was still rejected. Looks like IRS is rejecting all Turbo Tax filings due to this error... even if the math works out correctly!

rolltide963

Level 2

It still isn't working! If you purchased between January and June you should get 3750 and it is only giving 1750. THIS ISN'T RIGHT!!!! I would love to file if the software can be fixed. This is really frustrating.

Jaj006t

Level 2

Maybe I am misunderstanding how these credits work.

Purchased AND HAD DELIVERED a brand new Tesla model 3 PRIOR to the June 31st cutoff for 50%....

But now I am being placed in the 25%?

Is this still some "glitch"? It is saying I have other deductions... I do not. Where is my other 25% of this credit going?

Hans4

Level 2

was able to get it calculated right today and submitted/accepted. the issue really is that the input screen in TurboTax is missleading. When you get to that screen enter your data (Make, VIN, purchase date and service date ...). In the box at the bottom put 7,500. It will then fill out the form 8936 correctly (generate the pdf file and check) - that is it will put 7500 in line 4a, it will calculate the phase-out percentage (50% or 25%) in line 4b based on your other input and it will show the correct tax credit amount in line 4c.

Seems there's still one issue: The phase-out percentage should be calculated based on the 'service' date, but TurboTax actually does based on the purchase date.

Hoololly

Level 2

ETA: I sorted it out. $469 is 25% of the $1,875 credit I'm eligible for. So if I change my credit to $7,500, it correctly limits to $1,875. This is not at all intuitive or explained anywhere. Seems like Turbotax should be able to calculate the correct credit amount based in my VIN and delivery date, rather than requiring me to enter an incorrect amount and then applying a limit. Do better, intuit!

Prior to the "fix" turbotax was correctly calculating my credit at $1,875, as I took delivery of my Model 3 in November. Now it's telling me my credit is limited to $469?!?! This makes no sense. I owe enough taxes that I should be able to take the full $1,875 credit, and I don't have any other credits or deductions that conflict. Seems like there's still an error in the EV credit calculation!!