EV tax credit calculation error

[haeffelin]

After waiting forever for the EV credit form, I filled out the information and noticed two issues.

First, I only qualify for 25% of the 7500 credit because it's a Tesla. That'd be $1875. It's showing my credit as 7500. I looked at the actual form and it shows the 25% in 4b on the form and 4c says to multiply 4a (7500) by 4b but it shows the full 7500 still.

Second, once I filled out the form, my refund amount didn't increase with the addition of the tax credit. I am paying like 24k in taxes so plenty of taxes to get a credit out of.

Anyone else see anything similar to this?

I have to wait until next week for the EV charging form so we'll see if another update fixes the issue.....

[AlexanderS08]

Waiting for another update is prudent for now. I am curious if you could look at one thing for me on the actual tax return, Schedule 3, Line 6?

This is where the credit will come through at. I'm curious if it says $1,875 or $7,000 there? If it says $1,875 then you know you are good to go and it is just a formatting issue on the Form 8936 on which you claim the credit.

[Njtaylor]

Yes, the EV tax credit section appears to not be functioning correctly for me. When I enter the information about my Tesla Model 3 SR+ purchased at the end of March 2019, TurboTax reports that i qualify for $7500 credit. The IRS website lists the credit as half that.

TurboTax allows me to override its figure and enter the correct amount. I did that. But. I’m concerned that when this bug is fixed, the corrected amount I entered will be “Corrected” too, and my return will become inaccurate. Does intuit have a projected date for fixing this?

(the credit, by they way, does get computed into my Federal Tax Due figure at the top of the screen, but I’m itemizing deductions)

[JotikaT2]

TurboTax is currently working on fixing an issue with how the credit is calculated in the program.  Please see the attached for more information on how to be updated when they rectify the issue.

Motor vehicle credit is not calculating correctly

[mwfriederichs]

So, last week you said the EV credit form would be available.  I filled it out, adjusted the amount to the correct $3750 for a June 2019 purchase, filed my taxes, and it was rejected.  TurboTax informs me that it will have the FIXED form available today.  So I update, and it recalculates, reducing my credit to $1875 WHICH IS INCORRECT! I cannot manually adjust it to the proper $3750.  When I enter that amount, it refuses to recalculate properly and will not accept the manual input. When will Turbo Tax fix this so I can file my taxes?

[LeonardS]

TurboTax has released an update to Form 8936.  Follow these steps to insure that TurboTax is using the updated Form 8936. 

• Clear your browser's cookies and cache 

• Delete Form 8936  

• Enter your vehicle information on Form 8936 

This link Filing Tax Form 8936: Qualified Plug-in Electric Drive Motor Vehicle Credit has information you may find helpful. 

[doingtaxes234345345]

I have the same problem. I deleted my car, re-added it, and it says something like "we calculated your credit to be $3750" which is correct. However, when I continue through the wizard, I get to "Qualified Plug-in Electric Drive Motor Vehicle Credit Summary" which shows the credit to be $1875, and I cannot change this. Please help.

[mwfriederichs]

Clearing cache/cookies and deleting form and re-entering data appears to do the trick.  Now shows proper credit (and refund), but shows $7500 in the manual entry line.  Not changing it.  Will see if IRS accepts it now, or if Turbo Tax has to fix it again.

[AnnetteB6]

Be sure that you do not change the maximum credit amount shown on the screen, otherwise the calculation will not be correct.  

Here is the explanation:  

TurboTax will calculate your maximum credit based on the details entered for your vehicle and any applicable phase-out based on the purchase date. 

On the screen where it shows the amount of credit you qualify to receive, the box at the bottom of the page is showing the maximum credit that would have been allowed for your vehicle had a phase-out not applied.  Your credit may be limited by the phase-out.  If you change the number on that screen, your credit will not be calculated correctly.  

The information on the screen says this field is for adjusting the amount of maximum credit it is does not match the manufacturer's specification.  The number entered here will be the maximum credit that you may receive prior to any limitation being applied.  If you change it, your credit will be based on the number entered.  

[haeffelin]

I think you missed the issue of the post and are answering another question. It is clear that turbo tax should calculate the phased out value of the rebate from the information provided. Issue was that it WAS NOT calculating it correctly. The issue was resolved with a later software update.

[duketg]

Thank you for clarifying this. 

FYI, the purpose of that box is very confusing.  It would be helpful you added a note by the box making it more clear that this is the maximum possible credit, not the amount you expect to receive.

[redkkc]

A week ago I put in my information for the tax credit on my Chevy Bolt and it was fine at the amount of $3750 as noted in the IRS.  I didn't file because I had a few other things to enter.  Today I went in to file and it's now showing my credit as $1875 which is not correct so my refund is now less then it should be.  Is there a glitch somewhere in this application?  If I continue to file will this adjust or what is going on.  I currently have a refund due to me so it shouldn't be less.  Obviously I want my full amount credit to be applied.  I see that there are other glitches and I'm not sure what to do...other than remove everything from Turbo Tax and go with H&R Block or another online service.

Any assistance would be great!!

[duketg]

Check that you have the max amount of $7500 in the box that says "Credit Amount."  That box is NOT for the amount you expect to receive.  If that box says $3750 and you are in a phaseout period, you will get a reduced credit.  

If you read the rest of this thread, you'll see some discussion on that box.  I feel that it's not at all intuitive what it's purpose is.  It tripped me up for quite a while as I was putting in my Model 3 info.

[03A3]

We filed our taxes on 2/22/2020, which was 2 days after the awaited EV instructions/forms update on 2/20/2020 from the IRS, that TurboTax and we were waiting for.  My electric car was a new 2019 Chevy Bolt that I bought on 8/28/2019.  The Turbo Tax program calculated my phase out percentage at 100% on 4b of Form 8936.  To this day I am not sure if it calculated my deduction correctly, as my actual tax owed was $5,975.00, which I received back.  If my taxes were calculated incorrectly by TurboTax, what would be the fix?

we fie

[frank mc]

I am experiencing similar issues. Bought two Teslas that should have a tax credit of 3750 each, but it only provides a partial of the full 7500 for both tax credit. I have already brought this up, but still no fix for this. Sad. Paid for this software and now I have to go to service to have straightened out because Turbo Tax not correcting error.