It depends. If it is simply a cash rebate for the purchase of your vehicle it is not required to be reported. However, if your dealer did provide information to the IRS about your electric vehicle (EV). If your seller did not do the following you should assume the rebate is not taxable.
- Sellers of vehicles that are eligible for a new clean vehicle credit under IRC 30D must furnish a report to the buyer at the time of sale and also to the IRS for those vehicles to be eligible for a credit under IRC 30D. This includes manufacturers who sell directly to customers. IRS Publication 5864
Cash rebates. IRS Publication 525
A cash rebate you receive from a dealer or manufacturer of an item you buy isn't income, but you must reduce your cost basis by the amount of the rebate.
Example 36.
You buy a new car for $24,000 cash and receive a $2,000 rebate check from the manufacturer. The $2,000 isn't income to you. Your basis in the car is $22,000. This is the basis on which you figure gain or loss if you sell the car, and figure depreciation if you use it for business.
If the cash rebate applies to you remove the 1099-MISC from your tax return use the link below for your TurboTax version.
- If you're using TurboTax Online software and need to delete a form, click here.
- If you're using TurboTax Desktop software and need to delete a form, click here.
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