topic What do I do if I transferred a clean vehicle tax credit to the dealer and did not qualify for it? Turbo Tax doesn't allow me to enter the vehicle since I didn't qualify. in Deductions & credits

What do I do if I transferred a clean vehicle tax credit to the dealer and did not qualify for it? Turbo Tax doesn't allow me to enter the vehicle since I didn't qualify.

yazell-donald — Tue, 03 Feb 2026 05:23:57 GMT

I purchased a used EV in 2024 and my AGI does not qualify for the tax credit. I was incorrectly guided through the process and transferred the credit I did not qualify for to the dealer ($4,000). Turbo Tax does not seem equipped to handle this situation and I know I'm on the hook for the $4,000 back to the IRS.

Re: What do I do if I transferred a clean vehicle tax credit to the dealer and did not qualify fo...

DianeW777 — Wed, 29 Jan 2025 00:11:49 GMT

In order to assist, we need more clarification as well as any questions you have about your entry, if appliable.

What is the type of vehicle?
What year is the used vehicle?

It's clear you must repay the credit if your income is over the amount for your filing status:

$150,000 for married filing jointly or a surviving spouse
$112,500 for heads of households
$75,000 for all other filers

If you would like to send us a “diagnostic” file that has your “numbers” but not your personal information it would help.  If you would like to do this, here are the instructions:

TurboTax Online:

Open your return -Go to the menu panel on the left side of your return and select Tax Tools.

Then select Tools below Tax Tools.
A window will pop up which says Tools Center.
On this screen, select Share my file with Agent.
You will see a message explaining what the diagnostic copy is.  Click okay through this screen and then you will get a Token number.
Reply to this thread with your Token number and your state. This will allow us to open a copy of your return without seeing any personal information.

TurboTax Desktop:

If you like, you can send a copy of your return that will be scrubbed to eliminate your personal data by using these steps:

Click on Online in the top left menu of TurboTax CD/Download for Windows
Select 'Send Tax File to Agent'
Write down or send an image of your token number and state then place in this issue.
We can then review your exact scenario for a solution.
Please also tell us any states included in the return. This is necessary for us to view the return.

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.

Re: What do I do if I transferred a clean vehicle tax credit to the dealer and did not qualify for it? Turbo Tax doesn't allow me to enter the vehicle since I didn't qualify.

Subliminll — Wed, 29 Jan 2025 10:49:40 GMT

I am in the same boat. I transferred my EV tax credit to dealer thinking my AGI would be under the 150,000 limit but i was over and now need to repay the $7500 back to the IRS. Form 8936 and Schedule A (Form 8936) should be added so turbotax can calculate the amount of refund or amount owed.

Re: What do I do if I transferred a clean vehicle tax credit to the dealer and did not qualify fo...

yazell-donald — Wed, 29 Jan 2025 13:42:34 GMT

This really has nothing to do with the vehicle eligibility. The issue has been identified if you read. Schedule 2 does not match the IRS form. The following scenario is missing from TurboTax:

1b: Repayment of new clean vehicle credit(s) transferred to a registered dealer
from Schedule A (Form 8936), Part II. Attach Form 8936 and Schedule A (Form
8936) .

Please note that when I enter the information for the vehicle for which I did not qualify, it just says the credit is Zero and does not retain the information.

The vehicle is a 2017 Chevrolet Bolt. It's a BEV. It qualified for the used credit ($4,000) per the IRS guidelines.

I was over the AGI for 2022 and 2023 and did not qualify, so I need to pay the $4,000 I transferred to the dealer back to the IRS.

Token: 1263622

State: OH

Here is a link to the IRS Schedule 2 as well. If TurboTax would handle section 1b, then this would be resolved. Thanks!

https://www.irs.gov/pub/irs-pdf/f1040s2.pdf

Re: What do I do if I transferred a clean vehicle tax credit to the dealer and did not qualify fo...

DianeW777 — Wed, 29 Jan 2025 14:21:30 GMT

Thank you for your valued feedback. We are aware of this issue and our developers are working diligently to correct it.

@yazell-donald

@Subliminll

Re: What do I do if I transferred a clean vehicle tax credit to the dealer and did not qualify fo...

yazell-donald — Wed, 29 Jan 2025 14:29:45 GMT

I have been a loyal TurboTax customer for years, but I think it's fair to mention to others following this thread that HR Block does in fact handle this situation. The $4,000 credit was identified as needing to be paid back and was deducted from my total return amount when I entered the same information.

Re: What do I do if I transferred a clean vehicle tax credit to the dealer and did not qualify for it? Turbo Tax doesn't allow me to enter the vehicle since I didn't qualify.

S0me0ne — Fri, 31 Jan 2025 22:08:52 GMT

TurboTax team. When can we expect this fix to be rolled out to TTO customers?

Re: What do I do if I transferred a clean vehicle tax credit to the dealer and did not qualify fo...

RachelW33 — Mon, 03 Feb 2025 02:45:54 GMT

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 as soon as this issue has been resolved.

@yazell-donald

@S0me0ne

@Subliminll

Re: What do I do if I transferred a clean vehicle tax credit to the dealer and did not qualify fo...

MegJo217 — Wed, 05 Feb 2025 19:48:59 GMT

Please help me, too! I am qualified for a $4000 previously owned EV credit which I transferred to the dealership at the point of sale. According to the IRS, because my vehicle was put into service in 2024, and my AIG as a Single filer in the prior year (2023) was well under $75K, I should be qualified. The IRS website states: "You can use your modified AGI from the year you take delivery of the vehicle or the year before, whichever is less. If your income is below the threshold for 1 of the 2 years, you can claim the credit." https://www.irs.gov/credits-deductions/used-clean-vehicle-credit
The Turbotax app is telling me if I made over $75K in either year, I am disqualified! My credit is coming up "zero." Please sort this out as soon as possible.

Re: What do I do if I transferred a clean vehicle tax credit to the dealer and did not qualify fo...

AnnetteB6 — Fri, 07 Feb 2025 01:50:46 GMT

If your situation when trying to claim the EV credit is not working properly in TurboTax, it would be very helpful to have a diagnostic copy of your tax file to take a closer look and try to offer a solution for you. The diagnostic file will not contain personally identifiable information, only numbers related to your tax forms.

If you would like to provide us with the diagnostic file, follow the instructions below and post the token number along with which version of TurboTax you are using and what states you are filing in a follow-up thread.

Use these steps if you are using TurboTax Online:

Sign in to your account and be sure you are in your tax 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.

@MegJo217

Re: What do I do if I transferred a clean vehicle tax credit to the dealer and did not qualify fo...

MegJo217 — Sat, 08 Feb 2025 12:51:42 GMT

@AnnetteB6 @Is there a different process to get the token in a mobile app?

Re: What do I do if I transferred a clean vehicle tax credit to the dealer and did not qualify fo...

AnnetteB6 — Sat, 08 Feb 2025 13:21:17 GMT

There is not a way to send a diagnostic file directly from the mobile app. You would need to login to TurboTax Online using a browser and follow the steps for TurboTax Online.

@MegJo217

Re: What do I do if I transferred a clean vehicle tax credit to the dealer and did not qualify fo...

MegJo217 — Sun, 09 Feb 2025 15:02:09 GMT

Okay well that’s all I have. Could you please investigate the issue? This can’t be unique to me. TurboTax is mistakenly saying I’m not eligible with my 2024 income on a car I purchased on 10/30/2024, but I AM eligible with my 2023 AGI, and as I have shown, the IRS says either year can be applied, whichever is lower. Thank you,

Re: What do I do if I transferred a clean vehicle tax credit to the dealer and did not qualify fo...

BrittanyS — Mon, 10 Feb 2025 20:38:36 GMT

There is an ongoing investigation on the EV credit payback. The issue has been corrected. If you are still experiencing issues, clear your cache and cookies and log back in.

If your experiencing a different issue with the EV credit, we would need to have the diagnostic code in order to determine what the issue is. In order to investigate the issue, we will have to see what is occurring with your return.

@MegJo217

Re: What do I do if I transferred a clean vehicle tax credit to the dealer and did not qualify fo...

MegJo217 — Mon, 10 Feb 2025 21:02:44 GMT

@BrittanyS @AnnetteB6 I was able to use a laptop to get my token: 1269761

Re: What do I do if I transferred a clean vehicle tax credit to the dealer and did not qualify fo...

AnnetteB6 — Tue, 11 Feb 2025 16:44:20 GMT

Thank you for providing your token number. After taking a closer look at your return, everything seems to be in order for your used EV credit. Since you transferred the credit to the dealer at the time of purchase, all you are doing on your return is reporting that you have essentially already received the credit.

Filling out the information in TurboTax is checking that you were qualified for the credit that was transferred to the dealer. Since it has already been used, the program tells you that your credit is zero. This just means that there is no credit being claimed on your return.

There was a previous experience in TurboTax that particular situation was not working properly, but that has now been corrected.

@MegJo217