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Level 3
posted Jan 29, 2025 12:31:05 AM

I'm totally confused what to do with form 8936 - Clean vehicle credits

Please help me, i am trying to get answers online but everyone are telling me different things.

So i purchased EV vehicle in 2024.

Answered YES to turbo tax question about transfer to the dealer and entered whole amount i received ($7500).

But few days ago i received a letter from IRS stating "you are required to file Form 8936 and 8936 Schedule A...".

 

So,

1. Do i need to file that form by myself and send it to IRS separately from my Turbo tax return ?

2. If turbo tax already asked me that question does it mean i don`t need to file it separately and turbo tax will take care of it?

 

thank you

 

2 44 23220
24 Replies
Expert Alumni
Jan 29, 2025 5:48:43 AM

No, you don't file it yourself, the Form is included in your tax return.

Yes, if you completed the interview, the issue would be reported on Form 8936 which is part of your tax return.

 

Form 8936 and Schedule A (Form 8936) should be included with the tax return you completed using TurboTax.

Please verify that those forms are included. 

 

HERE is a link with the steps to view the forms when using TurboTax Online. 

 

Level 3
Jan 29, 2025 7:45:45 AM

Thank you

 

So when i go to tools i see  Form 8936 now.

But i don`t see Schedule A anywhere.

Does is say Schedule A or something else?

 

Thank you

 

Level 1
Feb 1, 2025 3:26:51 PM

Yup, I have the same question.  Where is 8936 Schedule A?  This is very confusing and frustrating!

Level 1
Feb 2, 2025 1:10:21 PM

Actually, TurboTax automatically generates both forms!  If you click form view, you’ll see 8936 and A

Level 3
Feb 2, 2025 1:21:29 PM

they do.

But there is glitch in their system so your tax will never pass the pending status and IRS will never receive it.

Nobody using TT with EV clean vehicle credit got accepted yet by IRS

Level 1
Feb 2, 2025 1:25:53 PM

Thanks, but how do you know this?

Expert Alumni
Feb 2, 2025 6:37:29 PM

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.

 

@dare88 

@mariog7 

New Member
Feb 3, 2025 8:12:33 PM

Are we still supposed to fill out the form if we cancel the delivery ???? i called earlier and they told me it doesn't apply since I didn't get the car and wanted used

Expert Alumni
Feb 4, 2025 4:20:31 PM

No.  If you did not get the credit nor take delivery, then you would not fill out the form for the credit since there is no vehicle to apply the credit to. 

Level 1
Feb 7, 2025 2:24:43 PM

Has this issue been resolved ? I looked through the return and it appears form 8936 has been filled out aside from a few questions?

New Member
Feb 9, 2025 4:36:38 PM

Has anyone gotten their Form 8936 Schedule A to generate? I see Form 8936 has been generated in my list of forms, but not Form 8936 Schedule A...

Level 1
Feb 10, 2025 8:14:52 AM

Hi there, 

I did see form 8936 and schedule A both on my printed copy of my federal return. I did not submit my return yet as I read people were getting auto rejections. Unsure if that was resolved or not yet, waiting for a response on that.

The form appears to have completed necessary questions. 

Expert Alumni
Feb 10, 2025 11:24:02 AM

Before you file be sure to check the following steps: 

 

Please follow these steps:

 

1. Check the report that you received from the dealer and make sure it is correct and matches what you have entered on your tax return.

Dealers who sell vehicles eligible for a used (previously owned) vehicle credit under IRC 25E must furnish a report to the buyer at the time of sale and also to IRS for those vehicles to be eligible for a credit under IRC 25E

 

2. Contact the dealer and make sure that they provided the correct information to the IRS and/or that they did provide the sale information to the IRS.

 

If you file and get a reject, it can be due to IRS business rules:

  • VIN is incorrect (Rejection code F8936-030-01)
  • Your tax ID and VIN do not match in the IRS database (Rejection code F8936-046)
  • The credit type claimed and the amount entered on the Schedule A of Form 8936 is not matching the IRS database (Rejection code F8936-0047)
  • The purchase date is inconsistent with the IRS database (Rejection code F8936-048)

If number 1 and 2 are true and the IRS still rejects your tax return, you will have to print and mail the return, including substantiating documentation for the claim of the credit.

Clean vehicle credit seller or dealer requirements | Internal Revenue Service

New Member
Feb 10, 2025 8:29:10 PM

Form 8936 generated just fine. Form 8936 Schedule A is still not generating on my end. Anyone have any info as to why this is happening or recommendations to get it to generate? 

Expert Alumni
Feb 16, 2025 10:32:28 AM

To get Schedule A to generate, try going out of your program and going back in.  Make sure all updates have been run for your TurboTax program. Then check to see if Schedule A is there. I have seen people posting that their Schedule A is now there.

 

Click here for information on manually updating TurboTax.

 

To check for Schedule A in TurboTax Online click here for the instructions. ‌To do this in TurboTax Desktop, switch to "Forms Mode" and select your forms in the left panel of your screen.

 

To review your screens in TurboTax Desktop

 Go to "Deductions & Credits",

Scroll to "Cars and Other Things You Own"

click "Start or Update" next to "Energy-Efficient Vehicle" 

Review your screens and make sure everything has been answered correctly

 

To review your screens in TurboTax Online:

"Continue where you left off"

Click on "Deductions & Credits" in the left panel of your screen

Scroll down to "Cars & Other Things You Own"

Click on the (down-facing) caret

Select "Energy-Efficient Vehicles"

Review your screens and make sure everything has been answered correctly

 

If you completed the screens for "Energy Efficient Vehicles"' it will be reported on Form 8936 which is included as part of your tax return. A Form 8936 and Schedule A (Form 8936) should be included with the tax return you completed using TurboTax.

 

 

Click here for additional information on Form 8936.

 

Click here for "Understanding the New Clean Vehicle Credit"

 

Click here for "What's a clean vehicle credit?"

 

 

If you issue is not resolved, please come back to TurboTax Community with any additional information or questions you may have and we will be glad to help you.

New Member
Feb 17, 2025 7:14:29 AM

I just received the same notice. However, when I look at the transcript through IRS.Gov, my 8936 Schedule A doesn’t show my vin, service date, or the credit amount. Shouldn’t that have the information I entered into Turbotax?

Level 1
Feb 18, 2025 8:04:23 AM

What interview are you referring to?  How do I get to it???

Expert Alumni
Feb 18, 2025 9:12:37 AM

To get to the section of your return to enter information needed to claim the Energy-efficient Vehicle Credit, go to Deductions and Credits > Cars and Other Things You Own > Energy-Efficient Vehicles and click Start or Update.

 

This will take you through the process of claiming a credit for purchasing an EV.

 

Or, click the magnifying glass at the top of the screen and enter 'electric vehicle' into the search box.  Then click the link provided by the search.

 

@shorthills8 

Returning Member
Feb 21, 2025 3:50:09 PM

I have a connected question. If I use EasyStep and fill in the requested information, the response I receive is that I cannot deduct the $7500 from my tax bill. However, the $7500 was an advance on my refund for 2024, which the dealer received. But without being able to deduct the $7500 from my tax bill, I am essentially repaying the government for the $7500 that they paid my dealer. The result is that the $7500 proves to have been a loan rather than a credit. This can't be right.

New Member
Feb 23, 2025 8:02:06 AM

I am having the same issue.  I e-filed my federal and state forms.
Received a letter from IRS dated 17-Feb-2025, you required to file a completed form 8936, Clean Vehicle Credits and Form 8936, Schedule A.

What do I need to do ?

Returning Member
Feb 23, 2025 10:57:01 AM

Do a search under forms for schedule A. There is a schedule A that includes "8936" in its title.

Returning Member
Feb 23, 2025 11:00:22 AM

Click on "forms" and type in Form 8936. Also type in Schedule A (8936). You will need both. If you are using EasyStep, the process is under "credits" on taxes.

Returning Member
Feb 23, 2025 11:09:16 AM

In talking with Turbotax advisors (one of their tax advisors, who also drew in a higher level tech person) I discovered that a flaw in the programming is that if you answer the question of whether you received the credit from the dealer with "yes," the forms do not compute your credit right; in fact, the program will tell you that your credit is ZERO. This is a glitch in the system. I was instructed to answer the question with "NO" to obviate the problem, but this results in form 8936 wrongly stating that you did not receive the credit from the retailer. Turbotax needs to fix this. But in the meantime, if you do not mind filing by mail, you can correct the response on a hardcopy of 8936.

Hopefully someone from Turbotax sees this and effects the change.

Employee Tax Expert
Feb 23, 2025 3:26:56 PM

If you transferred the EV credit at the point of sale, you will not receive a credit on your tax return. The credit will be reported as zero. You still have to complete Form 8936 and Form 8936-A to confirm your eligibility for the credit you transferred.  Most sale details have been reported to the IRS by the dealer already.