Why does Alternative Vehicle Refueling Property Credit form 8911 continue to calculate $0 credit?

I should meet all eligibility requirements but TT still calculates the credit as $0 and will not generate form 8911.

AnnetteB6
Employee Tax Expert

Deductions & credits

Be sure that you do not change the maximum credit amount shown on the screen, otherwise the calculation will not be correct.  

 

Here is the explanation:  

 

TurboTax will calculate your maximum credit based on the details entered for your vehicle and any applicable phase-out based on the purchase date. 

 

On the screen where it shows the amount of credit you qualify to receive, the box at the bottom of the page is showing the maximum credit that would have been allowed for your vehicle had a phase-out not applied.  Your credit may be limited by the phase-out.  If you change the number on that screen, your credit will not be calculated correctly.  

 

The information on the screen says this field is for adjusting the amount of maximum credit it is does not match the manufacturer's specification.  The number entered here will be the maximum credit that you may receive prior to any limitation being applied.  If you change it, your credit will be based on the number entered.  

 

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Deductions & credits

my question is about the credit for an EV charge station, not the car itself.

AnnetteB6
Employee Tax Expert

Deductions & credits

My apologies -- I misread the question.

 

The most likely reason that you are not being allowed to claim the credit pertains to Alternative Minimum Tax (AMT).  AMT is a part of the calculation for the credit claimed on Form 8911, whether your particular tax return is subject to AMT or not. 

 

There is a tentative minimum tax for AMT that is calculated in the background as your return is completed.  Form 8911 compares that tentative minimum tax to the net regular tax after certain other credits have been taken into account.  If the tentative minimum tax is greater than the net regular tax, then the Form 8911 credit is disallowed.  

 

Unfortunately, the instructions for Form 8911 do not specifically spell this out so that it can be better understood or explained.  

 

For your reference, here is a link to the instructions for Form 8911:  Instructions for Form 8911

 

@michaelreeve

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Thank you for continuing to reply.

My Tentative Minimum Tax shows as $10,700 and Regular Tax as $19,900 so it doesn't not appear that the $0 calculation is related to the tentative minimum tax.

AnnetteB6
Employee Tax Expert

Deductions & credits

If you could provide a diagnostic copy of your return then we can examine the situation in more detail.  

 

Use these steps if you are using TurboTax Online:

 

  • Sign in to your account and select Take me to my return.
  • Select Tax Tools in the menu to the left.
  • Select Tools.
  • Select Share my file with agent.
  • A pop-up message will appear, select OK to send the sanitized diagnostic copy to us.
  • Post the token number here. 

If you are using a CD/downloaded version of TurboTax, use these steps:

  • Select Online at the top of the screen
  • Select Send Tax File to Agent.
  • Click OK.
  • Post the token number here.

 

@michaelreeve

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Great thanks token number 617752

AnnetteB6
Employee Tax Expert

Deductions & credits

Thank you for sharing your token number.

 

The key issue that I see that is keeping you from being able to claim the credit on Form 8911 does boil down to the Tentative Minimum Tax being higher than your net regular tax.  The net regular tax is not the amount shown on line 12b of Form 1040, but instead it first takes into account certain credits that would reduce the tax before the Form 8911 credit is taken into account (credits are taken in a particular order based on the tax code).  Credits that are subtracted from the line 12b amount to get the net regular tax include the Child Tax Credit/Credit for Other Dependents,  credit for Child and Dependent Care Expenses, Education Credits from Form 8863, retirement savings contributions credit from Form 8880, and residential energy credits from Form 5695.

 

This means that in your particular case the Child Tax Credit is subtracted from the tax on line 12b which resulted in your net regular tax being lower than your Tentative Minimum Tax.  This disallowed the Form 8911 credit.  

 

@michaelreeve

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ProtoX13
Returning Member

Deductions & credits

I have run across a similar issue- @AnnetteB6, would you be able to take a look at Form 8911 in my return? My token number is 778030.

AnnetteB6
Employee Tax Expert

Deductions & credits

Thanks for sharing your token number.  After taking a closer look at your Form 8911, your possible credit for installing an alternative fuel recharging station is being limited to $0 due to the comparison of your Tentative Minimum Tax (line 17 of Form 8911) and your Net Regular Tax (line 16 of Form 8911). 

 

The Tentative Minimum Tax is calculated simultaneously with your regular income tax.  In your case, the Tentative Minimum Tax was greater than your Net Regular Tax and therefore, your Form 8911 credit is disallowed to $0.  

 

This is due in part to your being able to claim the EV Motor Vehicle Credit and an Education Credit as part of your return.  Without even one of those, you would have been able to claim the credit on Form 8911.  However, it is by far to your benefit that you claim the other two credits instead.  

 

@ProtoX13

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I understood from the responses above that if the regular net tax goes below the tentative minimum tax; the ev charger credit will not apply. Does that mean I could claim that in the following year? or do I have to claim it in the year it's bought/installed?

 

 

Thanks.

Eliyah

Deductions & credits

I have the same issue. My token number is: 1112210. It does not look like my regular tax went below my tentative minimum tax.

@AnnetteB6 

@michaelreeve 

 

Could you please check for me.

Thank you so much

 

AnnetteB6
Employee Tax Expert

Deductions & credits

Taking a closer look at your return, like many others the tentative minimum tax calculation is causing the Form 8911 credit to be disallowed.  

 

Without giving any specific numbers from your return, Form 8911 line 17 is about $16000 greater than line 16.  Therefore, the credit is disallowed due to the tentative minimum tax.  (It also appears that you are still working on certain sections of your return, so the difference in line 16 and 17 many change, but probably not enough to allow the credit on Form 8911).

 

To answer your other question, the EV charger credit must be claimed in the year the equipment is installed and it does not carryover to a future tax year if it cannot be claimed due to the AMT calculation.  You simply lose the opportunity to claim the credit. 

 

Even though Form 8911 will not be included as part of your tax return because the credit is disallowed, you should be able to specify Form 8911 to be printed or previewed from the Print Center using TurboTax Online to take a look at the details. 

 

@ekilada 

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