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?
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).
Please let us know if this resolves your issue!
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 !