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How do I repay a misclaimed Clean Vehicle Credit in TurboTax?

I transferred the used EV tax credit to the dealer but then got a bonus that puts me above the income limit to qualify for the credit.  When I enter the vehicle on TurboTax it just says I don't qualify, but I received a letter from the IRS saying I need to report the credit using Form 8936 and Form 8936 Schedule A. I looked at the forms and know that I should be reporting this on Form 1040 Schedule 2, line 1b. I know I owe roughly a $2000 credit and need to see it reflected on my TurboTax return.

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1 Reply
RachelW33
Employee Tax Expert

How do I repay a misclaimed Clean Vehicle Credit in TurboTax?

We are aware that some of our customers are having an issue with the EV credit payback reporting when the credit was transferred to the dealer.

 

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