How to add Form 8936 "Clean Vehicle Credits" in turbotax Business (Partership) software?

[Alan Xu]

Bought new Tesla in 2023 for business (Partnership). Could not figure out how to claim Clean Vehicle Credit (8936) in Turbotax software. My understanding is the credit shall be shown in K-1, so each partner can claim in their individual 1040. Can someone help me on adding 8936 in Turbotax business software? Does the business software even support it? Really appreciate.

[PatriciaV · Accepted solution]

Form 8936 and Schedule A for that form are not supported for TurboTax Business. You can find these forms from the IRS website (links below). 

Once you have calculated the amount on Form 8936 Part II Line 8, you can enter this in TurboTax on Form 1065 p5-6 Line 15 (under Credits) in the extra line below Code O. Use the drop-down to select Code AY (New Clean Vehicle Credit) then enter the amount in the box to the right. The total will be allocated to all partners on Schedule K-1 Box 15 Code AY.

IRS links to forms & instructions:

• Instructions for Form 8936 (2023)
• Form 8936
• Form 8936 Schedule A, Clean Vehicle Credit Amount

[Alan Xu]

Hi PatricalV,

This worked - really appreciate! 

One more question: Since Form 8936 and Schedule A are not supported  for TurboTax Business, can business return still be filled electronically without 8936 and Schedule A? Or we have to fill them manually by including Form 8936 and Schedule A?  Thanks again. 

[PatriciaV]

You can mail those forms separately but include a copy of Form 1040 so the IRS can match the physical forms to the e-filed return.