I entered my electric vehicle tax credit, and turbo tax automatically added the $7500 as credit, but yet, my total federal credit increased only by $1500. What about 6000

[Ashby]

Depending on your liability and other tax credits you take, you may not see the full tax savings of the tentative credit you calculate on Form 8936 Qualified Plug-in Electric Drive Motor Vehicle Credit. This is because the credit is a nonrefundable credit. Nonrefundable tax credits cannot reduce your tax bill below zero and also reduce your tax bill for a number of other credits taken before reducing the remaining tax bill for your plug-in electric motor vehicle credit.

[roise0r]

hm. I'm definitely paying more then 7500 in federal taxes and not getting any credits. Something else is going on.

[Ashby]

Year, make and model of vehicle?

[roise0r]

tesla model 3 2018

[Ashby]

Ok, should qualify for the $7,500. Credit gets phased out as more are produced, but this model phaseout doesn't start until 2019. When you say federal credit only increased by $1,500, do you mean your taxes only decreased by that much?

[roise0r]

The "FEDERAL REFUND" tracker at the top of the page showed $1,766 before I entered the electric vehicle tax credit, and become $3,266 after.

[Ashby]

Ok, so go to "Tools" on your left side of the screeen. Then, click "view tax summary" under other helpful links

[Ashby]

Once you have done that, look back at the left side and click "preview my 1040"

[Ashby]

Once you've arrived at the 1040, scroll until you get to Line 12 B

[Ashby]

That line will tell you the actual amount of credit you are receiving

[danefam12]

I was in the positive for my federal. well over 1K. I was supposed to get 4609 for my electric car, but it only added 2665. I literally only have my W2, another form for work expenses, a non deductible for a savings account. None of those things should cost me almost 2k....**bleep** the IRS yo. Thats my money I am paying for the car, not someone else's.

[DMarkM1]

The electric car credit is non-refundable.  That means you only get enough credit to reduce your tax liability to zero.  After that the refundable credits get added to your refund.  It sounds like your tax bill liability was low.  To see how it worked out follow these steps.

1.  Click "Tax Tools" in the left hand menu

2.  Click "Tools" in the left hand menu

3.  Click "View Tax Summary" in the center screen

4.  Click "Preview My 1040" in the left hand menu

5.  Scroll down to line 12b to see the credit added which will equal 12a your tax liability

6.  Continue to scroll down and lines 13-19 then add any other taxes and refundable credits and your withholding to arrive at your refund.