TurboTax rejects E-filing, stating "You have an amount on Form 3800, Part III, Line 1z carryforward from Qualified Plug-In EV credit (Form 8936).
This has worked the last two years, but fails for 2020. What gives?
The Electric Vehicle credit is nonrefundable, meaning the amount of the credit cannot exceed a taxpayer's tax liability. An electric vehicle tax credit does not carry over for individual buyers.
Click this link for more info on Electric Vehicle Credit Carryover.
IRS Instructions for Form 3800 say "Only the carryforward of the qualified plug-in electric vehicle credit claimed in Part I, Section B, of 2009 through 2012 Form 8834 can be reported on Part III, line 1z."
If this does not apply, you could Delete Form 3800 from your return.
Since we can't see your tax return in this forum, you can request an Offline Review if you need more help.
The Electric Vehicle credit is nonrefundable, meaning the amount of the credit cannot exceed a taxpayer's tax liability. An electric vehicle tax credit does not carry over for individual buyers.
Click this link for more info on Electric Vehicle Credit Carryover.
IRS Instructions for Form 3800 say "Only the carryforward of the qualified plug-in electric vehicle credit claimed in Part I, Section B, of 2009 through 2012 Form 8834 can be reported on Part III, line 1z."
If this does not apply, you could Delete Form 3800 from your return.
Since we can't see your tax return in this forum, you can request an Offline Review if you need more help.
I understand that the EV tax credit does not carry-forward for INDIVIDUALS but this portion of the EV tax credit is business-related (otherwise why would it show up on Form 3800 - "General BUSINESS Credit"). Tax credits attributable to depreciable BUSINESS property appear to be treated as part of the general business credit, and can be carried back one year or carried forward for up to 20 years.
Personally, I would have entered my carryover amount ($3863) on Form 3800, Part III (box C checked), line 1y (Form 8936) ... but TurboTax auto-populates the amount in line 1z, and then denies the ability to E-file. Argh.