I bought an EV that qualifies for the tax credit, but my dealer didn't report the sale. Can I still claim the credit?

[odomerin2014]

When I contacted the dealer for the sellers report, they said they didn't file it and could not back date it. Can I still claim the credit? If so, how?

[Vanessa A]

Yes, if you did not transfer the credit or they did not file it, then you would be able to still claim the EV credit on your return.  If for some reason your return is rejected for the EV credit, it is possible that they somehow reported it and you would then have to straighten that out with them and the IRS's guidance.

To claim the credit you will select the following

1. Deductions and Credits
2. Scroll down to cars and other things you own
3. Select start next to Energy Efficient Vehicles

or you can use the search bar and enter Energy Efficient Vehicles and Jump To Energy Efficient Vehicles.

As you walk through the questions you will be asked if you transferred the credit to the dealer.  Here you will answer NO since they said they did not file it.  Continue through to the end and it will show you the credit you are qualified for.

Things to remember about this credit:

• It is worth UP to $7,500 depending on the vehicle you purchase
• It is a nonrefundable credit.  This means it will reduce your tax liability by up to $7,500 but will not result in a negative number or a tax refund of money you did not pay in or have withheld.
• The credit cannot be carried forward
• You can use your income for the year you take delivery or the prior year if your income in the previous year was below the threshold if it is above the threshold in the current year. 
• In order to qualify your AGI must be less than:
  • $300,000 if Married Filing Joint
  • $225,000 if Head of Household
  • $150,000 if single or Married Filing Separate
• Vehicle Qualifications are as follows:
  • Vans, SUVS, and Pickup Trucks my have an MSRP of no more than $80,000
  • Other vehicles must have an MSRP of no more than $55,000
    • The MSRP does not include destination charges, options added by the deal (seal coating, extended warranty, etc.) taxes, fees, or manufacturer discounts or incentives. Basically, it does not matter if you strike a good deal on the vehicle if the Manufacturer says it is worth more than the limit, it does not qualify.
  • Final Assembly must be in North America
  • The amount of the credit may be affected by date placed in service
    • January 1, 2023-April 17, 2023 credit of $2,500-$7,500
    • April 18, 2023 credit amount is $3,750 to $7,500
  • Click here to enter your VIN to see if your vehicle qualifies

Credits for new clean vehicles purchased in 2023 or after

[rjbowe]

The vehicle I purchased on 11/15/2024 is eligible for the EV Tax Credit, however the Dealer did not file the IRS Clean Vehicle Sellers Report form. What documents do i need to provide to the IRS to get this Credit? Can I still file electronically? 

[DaveF1006]

To claim the EV Tax Credit for your vehicle, you'll need to provide the following documents to the IRS:

1. Proof of Purchase: This includes the bill of sale or purchase agreement that shows the date of purchase, vehicle identification number (VIN), and the purchase price.
2. Form 8936: You must file Form 8936, Clean Vehicle Credit, with your tax return for the year in which you took delivery of the vehicle.
3. Time-of-Sale Report: If the dealer did not provide the IRS Clean Vehicle Sellers Report, you should contact the dealer to obtain a copy of the report. This report is essential for claiming the credit.

If you do not have a successfully submitted time-of-sale report, you are not eligible to claim the credit. However, you can still file your tax return electronically and include Form 8936 with your submission.

IRS.gov

[AmeliesUncle]

If the dealer didn't file their required information with the IRS, it does not qualify for the credit (unless there is a first-year exception that I am not aware of).

You may want to have a talk with the dealership about why they did not file it.