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Level 1

EV Credit for Tesla 3

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?

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Expert Alumni

EV Credit for Tesla 3

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

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Expert Alumni

EV Credit for Tesla 3

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

 

Link to Filing Tax Form 8936

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Returning Member

EV Credit for Tesla 3

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? 

 

Highlighted
Expert Alumni

EV Credit for Tesla 3

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

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

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Level 15

EV Credit for Tesla 3


@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

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Level 1

EV Credit for Tesla 3

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.

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New Member

EV Credit for Tesla 3

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

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New Member

EV Credit for Tesla 3

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.

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New Member

EV Credit for Tesla 3

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

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Level 1

EV Credit for Tesla 3

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.

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Level 15
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Level 1

EV Credit for Tesla 3

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. 

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New Member

EV Credit for Tesla 3

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!

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New Member

EV Credit for Tesla 3

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.

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New Member

EV Credit for Tesla 3

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.

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