EV Tax Credit for Hyundai Kona

[gswhitted]

I bought a new Hyundai Kona EV in April 2021.  My tax due is $14K.  Other than the EV tax credit and a $383 credit for a 240K charging station, I have no other tax credits.  I owe no AMT.  TurboTax lowered my EV credit to $3,834, rather than the $7,500 I was expecting (as per the IRS website).  There is no documentation in TurboTax how it computed this reduced credit.  Why did TurboTax reduce the EV credit to $3,834?

[RaifH]

Based on the information you have given, it seems as if you are correct and should be eligible for the entire $7,500 credit. I had trouble re-creating your error, so can you please see if this may be causing the issue:

Can you verify that you input 64 as the amount of battery capacity kilowatt-hours? Entering less than this reduces the credit. When I entered 7.2, it reduces the credit to $3,834. 7.2 kW is the onboard charger, but the credit is based on the battery capacity. According to Hyundai, the battery system capacity is 64 kW/h. (The link is for the 2022 model, but 2021 has the same battery).

1. To verify your input, please go to the Deductions & Credits area of your tax return.
2. Click Edit/Add next to Energy-Efficient Vehicles
3. Click Edit next to your vehicle
4. Click on the My vehicle has four wheels and Continue
5. Select the model year
6. Enter your vehicle information with 64 as the Amount of Battery Capacity Kilowatt Hours

Please let us know if this resolves your issue!

[gswhitted]

Thanks for your really quick response !  I did enter 64 as the battery capacity, and initially TT still arrived at $3,834.  Since I could find no reason why the Kona did not qualify for the full $7,500, I just overrode $3,834 with $7,500, and TT accepted the amount.  I added some other 1099 data today, saved the file, and revisited it after your note above, and now the amount calculated by TT was the full $7,500.  To double-check, I added a second car to TT (identical to my Kona), and TT again said I was entitled to the full $7,500.  Not sure if TT updated its software between my last entry and today's entry, but everything appears fine now.  Thanks very much for your help !

[RaifH]

I'm glad you got it to work!