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Level 1
posted Feb 12, 2020 1:46:57 PM

Form 8936 (2019) has an error

Line 4a has the correct 7,500 credit; line 4b has the correct phase-out percentage (24% for Tesla purchased in September) but line 4c should be 7,500 X 25% = 1,875 but instead it says 7,500.  This results in an incorrect credit calculation and excessive refund!

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1 Best answer
Level 15
Feb 13, 2020 9:38:34 AM
24 Replies
Expert Alumni
Feb 12, 2020 2:37:59 PM

This form is not final yet. 

 

It should be available 24 hours after the IRS approves TurboTax to use the form. Currently, the IRS has not finalized the form. Here is the IRS web page to check the status of form 8936: Available Forms and Limitations. Scroll down to Form 8936.

Level 3
Feb 12, 2020 4:37:25 PM

It IS available, and as the original poster stated, the application is not processing the calculation correctly. I suggest TurboTax fix this ASAP otherwise they'll be on the hook for a lot of improperly submitted tax returns.

Expert Alumni
Feb 12, 2020 4:42:32 PM

The IRS has NOT finalized this form yet.  Please click the link below.

 

It should be available 24 hours after the IRS approves TurboTax to use the form. Currently, the IRS has not finalized the form. Here is the IRS web page to check the status of form 8936: Available Forms and Limitations. Scroll down to Form 8936.

Level 3
Feb 12, 2020 4:46:49 PM

Might be worth mentioning to Inuit/TurboTax to NOT include a form that's not finalized.

Expert Alumni
Feb 12, 2020 5:52:51 PM

@Idelatorre  We have tested your situation and it does limit the tentative credit correctly.  Can you run and update, then re-enter the data.  If you continue to have issues, please contact support.

Level 2
Feb 12, 2020 6:44:42 PM

I am having the same issue. It's not doing the math. This is on the online version, with a Chevrolet Volt.

 

Level 3
Feb 12, 2020 6:57:31 PM

I would if I could, but Intuit's horrid site goes out if its way to make it impossible to open a support ticket.

Expert Alumni
Feb 12, 2020 6:59:01 PM

The IRS just released Form 8936, Qualified Plug-in Electric Drive Motor Vehicle Credit yesterday. This form is needed to claim the credit. We are working fast to get this update into the TurboTax software. Form 8936 will be available by March 8, 2018.

Level 3
Feb 12, 2020 7:02:51 PM

Yes, 2018 seems appropriate (eye roll). I love these constant posts by so called "experts" about it not being available yet, when it's clearly available in the app. Do you guys get a commission for each post?

Not applicable
Feb 12, 2020 7:56:34 PM

Oof yea, this is really bad. The software incorrectly calculated my credit as $7,500 (Tesla model 3 purchased in March of 2019 should be $3,750) so I manually changed it to $3,750. But then when I view the form it generates when I go to file, it's doing incorrect calculations. On form 8936 line 4a it says "3,750" (should be $7,500), line 4b correctly says "50.00%", and line 4c has the correct value of $3,750, but is doing the wrong math because it should be 4a multiplied by 4b.

 

So mine looks like:

$3,750

50%

$3,750

 

But it should look like:

 

$7,500

50%

$3,750

 

Now stop giving this nonsense about the form not being available, the software *has* the form available, and is entering it onto 8936 incorrectly.

Level 15
Feb 13, 2020 9:38:34 AM
Level 2
Feb 14, 2020 10:59:06 AM

Please don't respond if you don't know what you are talking about. This already a know issue and has nothing to do with IRS approval.. Turbotax software programmers dropped the ball on this one.  It calculates it wrong!! 

See link https://ttlc.intuit.com/community/tax-topics/help/form-8936-qualified-plug-in-elec[product key removed]-vehicle-credit-is-not-calculating-correctly/01/1147839#M4113

Level 3
Feb 18, 2020 9:05:04 AM

Unacceptable!

Level 1
Feb 20, 2020 1:53:31 PM

I am a victim of the Form 8936 error when I filed on 2/14/2020. After I filled in the information for the EV credit I noticed that TurboTax calculated the wrong EV credit value so I put $1,875 for the credit (per IRS) to claim and after filing I received a rejection email. The TurboTax email didn't clearly explain the problem but said to refile on 2/20/2020. I logged back into TurboTax to see if there were any obvious errors in the EV credit data but didn't see any. I looked at Line 4c of Form 8936 and it correctly listed $1,875 so I figured I would wait for TurboTax to fix their software as the email didn't specify what the error was and I didn't know what to look for.

 

On 2/20/2020 I logged back in and TurboTax said everything was fixed and I should just continue to refile. However, I noticed that the refund amount was lower than expected so I revisited the EV credit section and noticed that TurboTax said I would get an EV credit of $469, not the expected $1,875. I changed the EV credit from $1,875 to $7,500 and then TurboTax correctly said I would get an EV credit of $1,875. I tried other values and TurboTax just blindly divided it by 4.

 

Upon further analysis of my 2/14/2020 Form 8936 I noticed that Line 4a showed $1,875 (this should have been $7,500), Line 4b correctly showed 25.00%, and Line 4c correctly showed $1,875. The 2/20/2020 TurboTax software fixes the math on the form but not the section where you input the data.

 

After changing the EV credit to $7,500 in TurboTax, Form 8936 now shows $7,500 on Line 4a so hopefully my resubmitted return will be accepted.


Lesson Learned: Don't assume software fixes are properly implemented. Had I believed that TurboTax was fixed I would have received a $469 EV credit instead of $1,875.


TurboTax Design/Software Problem Report: The EV credits are listed on the IRS website that you provide a link to your users. The software should use this information rather than relying on user inputs that can potentially be incorrect. The user should enter the date of purchase and the VIN which the software can decode into make and model which can be confirmed by the user or rejected and then allowed to manually enter in Vehicle and EV credit information (including phase out information). For vehicles listed on the IRS website, the software can determine the correct EV credit and the users won't have to waste their time looking up gross vehicle weights or looking up the EV credit they think their vehicle qualifies for. Since users are not expected to look up taxes in the IRS tables to input it into TurboTax, users should not need to look up EV credits on the IRS website to enter it into TurboTax. TurboTax should allow exceptions but should not penalize all users to input information readily available from the IRS.


Update 2/21/2020 (updated):

The IRS has accepted the updated form that I filed on 2/20/2020.

Since others on this forum have also encountered this problem, I would suggest Intuit audit all of the Form 8936 victims to see if they are getting the correct EV credit amounts and contact them if they aren't getting the correct EV credit.  Some people may not have noticed that the "fixed" Form 8936 contained the wrong EV credit amounts and TurboTax may not have flagged it as an error so some people may not receive the correct EV credit.

Expert Alumni
Feb 20, 2020 2:07:57 PM

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. 

New Member
Feb 20, 2020 3:50:41 PM

thats my exact issue! but i bought a Tesla Performance 3

New Member
Feb 20, 2020 10:15:52 PM

This form was updated, but it still has an error.  Now it under calculates the rebate.  I bought a Tesla on July 26, 2019.  Rebate is supposed to be $7500 x 0.25 for a total of $1,875, but it instead it reads $1875 x 0.25 for a total of $469.  Please fix this!

Level 3
Feb 21, 2020 6:11:49 AM

It is 21 February 2020 and the IRS For 8936 has still not been fixed in TurboTax. Online help is useless. Telephone support tells me that the form was available two days ago. Oh, wait. The form was available yesterday. Oh, wait. Yeah, you can sign up for an e-mail update that never comes. I have been on hold waiting for a supervisor for 50 minutes.

The IRS released this form on 14 February 2020. 

Expert Alumni
Feb 21, 2020 8:07:45 AM

The issue is supposed to be fixed sometime today 2/21/2020.

 

Please also update your program before fixing the reject:

  • If you are using the TurboTax CD/Download software program, open the program, from the top, under Online, select Check for Updates.
  • If you are using the online version, it's an automatic update when you sign in and out. 

 

If you are using TurboTax online version, I suggest you also clear your cache before logging back into the program.  To clear cache, click here 

 

https://ttlc.intuit.com/community/troubleshooting/help/how-to-clear-your-cache/00/26135

 

Level 3
Feb 21, 2020 9:10:40 AM

Let's review.

 

I have checked for updates every day this week. I just checked again - my software is up to date.

You tell me that the updated form is "supposed" to be fixed sometime today.

Telephone support tells me that the form is "supposed" to be fixed Monday 24 February.

I have been told that the form was "supposed" to be fixed on the fifth, twelfth, twentieth, and twenty-first of February. None of these "supposed" fixed materialized.

 

Claims made by Turbotax support of "supposed" dates have no credibility. Please stop with the misinformation.

 

Theoretically, Intuit staff could get a realistic estimate of a fix date. That does not appear forthcoming.

I am left to trial-and-error to check the status of this software.

 

If you do not have credible information, please stop posting.

Not applicable
Feb 21, 2020 9:20:49 AM

@LinaJ2020 lol? The form has been working since Wednesday on Turbotax online. You people really need to get your act together and get your stories straight. Every single "Employee Tax Expert" says something contradictory to each other, and contradictory to reality.

Expert Alumni
Feb 21, 2020 9:35:54 AM

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. 

Level 3
Feb 21, 2020 9:45:19 AM

I do understand that the online version of Turbotax correctly processes IRS Form 8936.

I am not using the online version of Turbtax.

I am using the Windows-based version of Turbotax.

As previously stated, I have confirmed that my software is up to date.

 

LeonardS posts misleading information about the issue. This is par for the course.

 

Let save you some time by reviewing once again:

I have been told that the Windows-based Turbotax was "supposed" to have corrected IRS Form 8936 on February fifth, twelfth, fourteenth, twentieth, and twenty-first. (I forgot about the fourteenth in a previous post, sorry.) I have been told today that Form 8936 is "supposed" to be fixed today. I have also been told today that Form 8936 is "supposed" to be fixed on Monday 24 February.

 

Theoretically, Intuit staff could get a realistic estimate on the status of this issue. This does not appear to be forthcoming.

As we see, Intuit staff like LeonardS will continue to provide disinformation.

Yes, Leonard - the online version is fixed. We have been talking about the Windows-based version. This is why your post regarding the online version is disinformation.

Level 15
Feb 21, 2020 10:08:12 AM

@weirdbaldguy If you have already verified that your TurboTax software is up to date by clicking on Online and then on Check for Updates and the 8936 is still not available or calculating incorrectly then try a manual update.

 

See this TurboTax support FAQ for manually updating the software to R18 using a Windows based PC - https://ttlc.intuit.com/community/updating/help/manually-update-turbotax-for-windows-software-basic-deluxe-premier-home-business/01/26041