topic In 2024, I purchased an EV and transferred the credit to dealer at sale. When filling form 8936, it says "Your total personal portion of New Clean Vehicle is Zero", why? in Deductions & credits

In 2024, I purchased an EV and transferred the credit to dealer at sale. When filling form 8936, it says "Your total personal portion of New Clean Vehicle is Zero", why?

derian93 — Wed, 28 Jan 2026 07:14:07 GMT

I transferred the credit for purchasing clean EV to the dealer, which they deducted at point of sale. I am eligible for this credit based on prior year AGI (per IRS website). However, when filling out the Clean Vehicle Credit, it says personal portion is zero. What does this mean? Does it mean I am not eligible for the 7500 or it just means no additional credit can be claimed? Do I have to pay the credit back? I am sure I'm eligible based on 2023 AGI. Thank you for your help!

Re: In 2024, I purchased an EV and transferred the credit to dealer at sale. When filling form 8936, it says "Your total personal portion of New Clean Vehicle is Zero", why?

DoninGA — Sat, 25 Jan 2025 01:23:53 GMT

You transferred the credit to the dealer and got a lower price for the vehicle purchase. You are not eligible for the credit.

Re: In 2024, I purchased an EV and transferred the credit to dealer at sale. When filling form 8936, it says "Your total personal portion of New Clean Vehicle is Zero", why?

derian93 — Wed, 29 Jan 2025 01:08:29 GMT

The IRS sent me a mail to submit form 8936 Schedule A, which basically is what I am doing, but the response is total personal portion is zero. I am not sure if it means there wont be additional credit or I am not eligible for the 7500 to begin with, which I am sure I was based on 2023 AGI. If not what’s the purpose of submitting this form?

Re: In 2024, I purchased an EV and transferred the credit to dealer at sale. When filling form 8936, it says "Your total personal portion of New Clean Vehicle is Zero", why?

dare88 — Wed, 29 Jan 2025 09:44:45 GMT

did you get your answer yet? I have same issue

Re: In 2024, I purchased an EV and transferred the credit to dealer at sale. When filling form 8936, it says "Your total personal portion of New Clean Vehicle is Zero", why?

Subliminll — Wed, 29 Jan 2025 11:04:18 GMT

I also noticed turbotax does not correctly calculate whether you are eligible or not for the tax credit. 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 modified AGI is below the threshold in 1 of the 2 years, you can claim the credit."

https://www.irs.gov/credits-deductions/credits-for-new-clean-vehicles-purchased-in-2023-or-after

Also -- Turbotax does not allow users to fill out form 8936 or Schedule A (Form 8936) to calculate if the user transferred the tax credit to the dealer and then made more than the max amount allowed of AGI, and whether the user has to repay the credit or not. In my case I transferred the credit but made more than max amount but turbotax doesn't allow me to fill out the forms to show that I owe the $7500 back to IRS.

Re: In 2024, I purchased an EV and transferred the credit to dealer at sale. When filling form 8936, it says "Your total personal portion of New Clean Vehicle is Zero", why?

Swimmerbhs — Wed, 29 Jan 2025 12:26:02 GMT

I had tax liability but still got a refund. so i will get to use half the credit. When reviewing the document nothing comes up in part 2-4. have not submitted it. but was on the phone with support for 20 minutes and then was hung up on.

Re: In 2024, I purchased an EV and transferred the credit to dealer at sale. When filling form 8936, it says "Your total personal portion of New Clean Vehicle is Zero", why?

andresu13 — Wed, 05 Feb 2025 15:15:16 GMT

I am in the same situation. I got the message saying that the "Total Personal Portion of your New Clean Vehicle Credit is Zero". I transferred the $7500 credit to the dealer when I bought the vehicle. My MAGI is under $300,000 (married filling jointly).

This message is confusing. Does it mean we don't qualify for the credit and need to return the $7,500? or that the credit was already applied when it was transferred to the dealer and therefore there is no "credit" given in this tax return?

Re: In 2024, I purchased an EV and transferred the credit to dealer at sale. When filling form 89...

DianeW777 — Sat, 08 Feb 2025 21:11:59 GMT

The credit will be zero on the tax return if it was transferred to the dealer. I understand how it could be confusing.

At your income level and for a new car the credit is $7,500, for your situation. Below is the rules should you have a 'Recapture Event'.

IRS FAQs for EV Credit Transfer

Recapture event —

(i) In general. A recapture event occurs if, within 3 full years from the date a qualified electric vehicle is placed in service, the vehicle ceases to be a qualified electric vehicle. A vehicle ceases to be a qualified electric vehicle if—

(A) The vehicle is modified so that it is no longer primarily powered by electricity;
(B) The vehicle is used in a manner described in section 50(b); or
(C) The taxpayer receiving the credit under section 30 sells or disposes of the vehicle and knows or has reason to know that the vehicle will be used in a manner described in paragraph (b)(2)(i)(A) or (B) of this section. (ii) Exception for disposition. Except as provided in paragraph (b)(2)(i)(C) of this section, a sale or other disposition (including a disposition by reason of an accident or other casualty) of a qualified electric vehicle is not a recapture event.

@andresu13

Re: In 2024, I purchased an EV and transferred the credit to dealer at sale. When filling form 8936, it says "Your total personal portion of New Clean Vehicle is Zero", why?

DAC211 — Thu, 13 Feb 2025 02:53:49 GMT

I have the same problem with TurboTax. So I added it as "Miscellaneous Income". Next problem is how to get the form electronically attached for submission. I may just end up printing it and mailing all the forms together (including the 8936 and its schedule 1) via snail mail. Disappointed in TurboTax on this one.

Re: In 2024, I purchased an EV and transferred the credit to dealer at sale. When filling form 8936, it says "Your total personal portion of New Clean Vehicle is Zero", why?

Mike9241 — Thu, 13 Feb 2025 03:03:49 GMT

you do not report the EV credit as income. you transferred the credit to the dealer so you already got the tax benefit. If you don't qualify all that is needed is completing the 8936/schedule A (TurboTax says they're ready) and indicating the credit was transferred to the dealer. Turbotax will add any unallowed credit to your tax liability, not to your income. This will flow to schedule 2 line 1b

Re: In 2024, I purchased an EV and transferred the credit to dealer at sale. When filling form 8936, it says "Your total personal portion of New Clean Vehicle is Zero", why?

DAC211 — Thu, 20 Feb 2025 06:01:39 GMT

Thank you. I was able to get the software to work (or perhaps it was update). Either way it worked.

Re: In 2024, I purchased an EV and transferred the credit to dealer at sale. When filling form 8936, it says "Your total personal portion of New Clean Vehicle is Zero", why?

Mitch56 — Thu, 06 Mar 2025 21:10:57 GMT

It shows up zero since you already transferred your EV credit to the dealer who credited the EV credit amount off your vehicle purchase price. You should have already received an IRS notice of the dealer reported EV credit transfer. Form 8936 just confirms your intent of EV credit transfer to the dealer. When you review Turbo Tax "Forms" section under Form 8936 and 8936 Schedule A, you will see what gets reported to the IRS from you when you file your taxes. Let's say for grins that you did not transfer the credit to the dealer at time of purchase, you can then take the credit yourself when filing your taxes and the credit amount would show for you assuming that you are eligible to received (i.e. within MAGI guidelines, vehicle qualifies, etc...). So all is well 🙂

Re: In 2024, I purchased an EV and transferred the credit to dealer at sale. When filling form 8936, it says "Your total personal portion of New Clean Vehicle is Zero", why?

Prabinpatro — Sun, 06 Apr 2025 19:27:14 GMT

What is the solution? I am in same situation

Re: In 2024, I purchased an EV and transferred the credit to dealer at sale. When filling form 89...

LindaS5247 — Sun, 06 Apr 2025 20:52:03 GMT

If you transferred the credit to the dealer and got a lower price for the vehicle purchase. You are not eligible for the credit.

Click here for "Filing Tax Form 8936: Qualified Plug-in Electric Drive Motor Vehicle Credit"

Click here for additional information on the New Clean Vehicle Tax Credit.

Click here for a FAQ on the "New Clean Vehicle Tax Credit".