How does TurboTax handle situation where I transferred clean EV credit to dealer when I did not qualify?

[Mike9241]

there may be an easier way. go to the 

deductions  and credits tab

scroll down to the link for energy-efficient vehicles

check yes to bought a plug-in

the next screen check the box for type

then next screen check yes to transferred the credit to the dealer and the amount

continue through the following screens providing any needed info

finally you'll come to a screen where you enter vehicle info including its VIN

you're done. based on your agi for 2023 and 2024 any disallowed credit will go on schedule 2

I did this in step mode in desktop. since I don't use online I hope this works. for those that use this version.

this is from 8936 instructions

Transfer of new clean vehicle credit. For vehicles
placed in service after 2023, you may be able to transfer
the credit amount to the dealer at the time of sale and
receive an immediate financial benefit in place of a tax
credit claimed on your tax return. If you elect to transfer
the credit, you must file Form 8936 and Schedule A (Form
8936) with your return for the tax year in which the vehicle
was placed in service. For details, go to IRS.gov/
CleanVehicles.

[yazell-donald]

I am the one who mentioned HR Block. While it handles this situation nicely, I should mention their solution is missing the Alternative Fuel Vehicle Refueling Property Credit. I installed my EVSE last year as well, so this was a deal breaker. HR Block customer service was a lot less competent than the Turbo Tax customer service, so I guess I'll wait for an automated solution here. 

[RachelW33]

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.

Please click here to sign up to receive an email notification when this issue has been resolved.

@abigailjeske 

@bk251 

@Mikeredmond13 

[rkirch]

The desktop version is also incorrectly handling the income limitations for the EV credit.  Is that being worked on too?  The guideline states that for married filing jointly, I qualify if my income is less than 150k in 2024 or 2023.  Turbotax is looking at it the other way - that I'm disqualified if my income is >150k in either year.

[Vanessa A]

Please double check that you entered your income that is less than $150,000 for 2023.  Is TurboTax giving you the specific error telling you that you are income disqualified?  When I enter an income of $145,000 for 2023 with an income of over $400,000 for 2024, TurboTax is still giving me the credit.  Look at form 8936 to be sure your numbers are correct. 

If you are still not getting the credit, you can delete your form 8936 and re-enter all of the information.  If you are using the online version click here for instruction.  In you are using the desktop version click here. After you delete the form if you are using the online version, you can clear your cache and cookies, then re-enter the information for the EV Credit. 

Which version of TurboTax are you using?

[MegJo217]

you're supposed to be able to use the prior year's AIG, - the year immediately before the vehicle was placed in service- whichever is less. So if you bought the car and got a raise in 2024, you should be able to use your 2023 AIG.