8936-A Commercial Vehicle tax credit

[azdm]

I transferred the clean vehicle credit to the dealer at purchase. I should be able to show I do not qualify for the "clean vehicle credit"; repay that credit on Schedule 2; and then choose the "Commercial Clean Vehicle Credit" in Part V of the form. Why does TurboTax not let me fill in Part V of 8936-A?

Instructions for Form 8936 say:

Coordination with other credits. A vehicle that anyone
has claimed for the new clean vehicle credit in Part II of
Form 8936 cannot be used to claim the qualified
commercial clean vehicle credit in Part V of Form 8936. If
your vehicle qualifies for both credits, you may choose
which of those credits to claim.
Repayment of credit. If you purchased a new clean
vehicle from a registered dealer and reduced the amount
you paid at the time of sale by transferring the credit to the
dealer and you no longer qualify for the credit when you
file your tax return, you must repay the amount of the
credit that you transferred to the dealer.

Note: this was first posted in "After you file" by mistake

[Vanessa A]

This seems to have been resolved with a previous update.  I am able to "repay" the credit that was transferred and then claim the Commercial Clean Vehicle Credit when I go back in and select commercial vehicle credit.  

[azdm]

On 8936-A, when I check YES on line 4A, I am only able to select YES in line 5 or line 6 and not in line 7 for Commercial Vehicle. I'm also not able to select it in line 18b. Where were you able to select the Commercial Vehicle?

[Vanessa A]

Go back to the interview mode instead of forms mode.  Walk through the questions for the transferred Credit and it will then show you (assuming you do not qualify) that you have to pay back the credit.  This will show on Schedule 2 line 1b.

Then you can go back and select the Qualified Commercial Vehicle and walk through the steps to enter the vehicle again and claim the credit. 

[azdm]

Using Step-by-Step as you showed worked to add the Commercial credit, but it changed lie 4A on form 8936-A to say NO I did not transfer the credit to the dealer at the time of sale. That is not correct. I did transfer the credit to the dealer.

[Vanessa A]

I am able to repay the credit.  Once I repay the credit when it allows me to claim the new credit, it does eventually remove the repayment or it gives me a duplicate VIN error several steps later. 

After going back into it further, and further investigating, it appears the problem is you cannot use the same VIN for two different credits.  So since this VIN was already "claimed for the transfer credit", you cannot claim it for the Commercial Vehicle Credit.  When you made the transfer choice at the dealership, you chose that credit.  Now that VIN is "locked" to that credit and cannot be used for the Commercial Vehicle Credit. 

As you posted above...." A vehicle that anyone has claimed for the new clean vehicle credit in Part II of form 8936 cannot be used to claim the qualified commercial clean vehicle credit"  Meaning, you cannot repay the credit on one part of the form and then reclaim it on the other part of the form either. 

So basically, you get to choose ONE time, which credit you are going to use.  Once the VIN is on the form for one credit, that VIN cannot be used for another credit.  This is why the form is not allowing you to do both things.  The interview questions take a few more steps to "catch up" but the form is "protecting" you from claiming the credit that cannot be claimed since the VIN was already used to claim the credit even if it is having to be paid back. 

[azdm]

Instructions also say "If your vehicle qualifies for both credits, you may choose which of those credits to claim." 

So frustrating. Thanks.