topic Re: EV Credit for Tesla 3 in Deductions & credits

EV Credit for Tesla 3

Playcool — Sat, 15 Feb 2020 04:44:57 GMT

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?

Re: EV Credit for Tesla 3

DianeC958 — Sat, 15 Feb 2020 15:32:26 GMT

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

Link to Filing Tax Form 8936

Re: EV Credit for Tesla 3

luigi65 — Sat, 15 Feb 2020 18:08:08 GMT

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?

Re: EV Credit for Tesla 3

BarbaraW22 — Sat, 15 Feb 2020 20:53:14 GMT

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

Re: EV Credit for Tesla 3

Anonymous_ — Sun, 16 Feb 2020 00:10:44 GMT

@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

Re: EV Credit for Tesla 3

Playcool — Sun, 16 Feb 2020 04:47:18 GMT

Thank you BarbaraW22 - you confirmed what I suspected and provided the links I needed. I know TurboTax was being criticized for not having 8936 ready to go earlier, but I think I'd have preferred they waited until it was right.

Re: EV Credit for Tesla 3

dmgold — Tue, 18 Feb 2020 20:30:26 GMT

It's too bad they released it BEFORE getting it right. My return was rejected because of their error.

It should have been delayed until it was ready.

SHAMEFUL

Re: EV Credit for Tesla 3

rprewer — Thu, 20 Feb 2020 14:00:22 GMT

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.

Re: EV Credit for Tesla 3

sgottscho — Thu, 20 Feb 2020 14:38:08 GMT

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

Re: EV Credit for Tesla 3

falcon5244 — Thu, 20 Feb 2020 14:59:48 GMT

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.

Re: EV Credit for Tesla 3

Anonymous_ — Thu, 20 Feb 2020 16:00:53 GMT

@falcon5244 @sgottscho Please see the following TurboTax article.

https://ttlc.intuit.com/community/tax-topics/help/form-8936-qualified-plug-in-electric-drive-motor-vehicle-credit-is-not-calculating-correctly/00/1147839

Re: EV Credit for Tesla 3

bekaheaker — Thu, 20 Feb 2020 18:20:57 GMT

My return was rejected the other day. I waited until today when it was promised to be fixed. Now, it's not allowing me to take the full credit. We purchased in November and are therefore entitled to the $1875. TurboTax is only letting me take a little over $400 claiming I have other deductions. Which I don't, because even without the car, I'd still be getting a refund. I'm very confused and am not going to pay $50 just to find an answer to something that seems to be an error on TurboTax's part.

Re: EV Credit for Tesla 3

ClarityOwner — Thu, 20 Feb 2020 18:22:51 GMT

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!

Re: EV Credit for Tesla 3

sgottscho — Thu, 20 Feb 2020 18:22:55 GMT

It is supposed to be fixed tomorrow, but make sure you change the $1875 back to $7500. Turbotax automatically calculates the 25% phase out rate to change the $7500 to $1875.

Re: EV Credit for Tesla 3

rprewer — Thu, 20 Feb 2020 18:34:39 GMT

Mine did get rejected and I was able to re-submit. I had to go back through the steps for this credit and enter the full 7500, and then it did adjust correctly and tell me that I was eligible for 1875. My re-submitted federal return was accepted a few hours later, so they might have it sorted out now.

Re: EV Credit for Tesla 3

Hans4 — Thu, 20 Feb 2020 19:26:59 GMT

Hope TurboTax team will read this - the form needs to calculate the tax credit as follows:

7,500 for Tesla's put in use before 2018 Dec, 31.

3,750 for Tesla's put in use between 2019 Jan, 01 and 2019 June, 30

1,875 for Tesla's put in use after on or after 2019 July, 1

I got one on June 27, 2019. The initial version of TurboTax calculated the credit with 7,500 (to high), after the update from today (2020 Feb 20) it calculates it too low - 1,875.

Seem it just can't do it right for the time from 2019 Jan 1 until June 30.

Hope the update tomorrow will get it right so that I can finally submit my updated return without getting it rejected.

Re: EV Credit for Tesla 3

mjonlin23 — Thu, 20 Feb 2020 19:35:48 GMT

To fix that, when you can adjust the credit put the full $7,500, it will automaticly make it 25% whcih is the $1875

Re: EV Credit for Tesla 3

sd_scorpio21 — Thu, 20 Feb 2020 23:27:44 GMT

Make sure you have a total of 7,500 in the box the pops up after entering EV information. It should calculate afterwards. I refiled last-night, unfortunetly I was rejected again. I just filed for the 3rd time, hoping it goes through since my preview shows the 1,875 as EV credit, not 7,500. Fingers crossed. PS. TurboSucks

Re: EV Credit for Tesla 3

rolltide963 — Fri, 21 Feb 2020 00:00:06 GMT

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.

Re: EV Credit for Tesla 3

latimerluis — Fri, 21 Feb 2020 00:02:01 GMT

Seem it just can't do it right for the time from 2019 Jan 1 until June 30.
>> I agree.

Mine had rejected even though I manually overrode the number to $3,750 (purchased mine in March 2019). Doing this override before today's "fix" adjusted my Federal appropriately, but trying to use the override after the latest release doesn't make any difference; it defaults it to $1,875, which is NOT correct.

What's the point of this adjustment field if I can't use it to correct an obvious error in the system? Is this really going to be fixed?