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wobushini345
Level 1

I only get $436 out of $1875 Energy-Efficient Vehicles credit, Why?

I got my new Tesla model 3 on 12/30/2019. After I input all info about my car, it said I qualify for only $436. Why is that?

8 Replies
whileloop
Level 1

I only get $436 out of $1875 Energy-Efficient Vehicles credit, Why?

I am not getting the correct credit either and I'm supposed to qualify for 3750 credit but am only getting half of that.  If I override it and put in the full credit of 7500 it seems to apply it correctly but I think that might cause more headaches.  It seems they have a bug in their app...  Supposedly this is to be fixed by tomorrow, see:


https://ttlc.intuit.com/community/tax-credits-deductions/discussion/re-ev-credit-for-tesla-3/01/1160...

 

hope that helps!

 

cc: @BarbaraW22 

lcrowe
Level 1

I only get $436 out of $1875 Energy-Efficient Vehicles credit, Why?

The same thing is happening to me! I have a feeling they are calculating the deduction wrong as 436 is a similar fraction of 1875 as 1875 is to 7500. The irritating thing is I also filed with H&R Block as I got tired of waiting for TurboTax to fix this and they are doing the same thing.

rprewer
New Member

I only get $436 out of $1875 Energy-Efficient Vehicles credit, Why?

Same here! I didn't realize what was happening until after I submitted. The form applied the phase-out % of 25% to the 1875.00 but the instructions did NOT say that. I'm not sure how I will get it fixed :( 

KurtL1
Expert Alumni

I only get $436 out of $1875 Energy-Efficient Vehicles credit, Why?

 

Form 8936 - Qualified Plug-in Electric Drive Motor Vehicle Credit  has been corrected in TurboTax.

 

To have the credit calculated correctly we recommend the following steps:

  1. Clear you Cache and Cookies on your computer, (hold down the keys CONTROL, SHIFT, and DELETE at the same time.)
  2. Delete Form 8936 from your return.
  3. Add Form 8936 back to your return and re-enter the information.

To delete a return off of your return you need to:

  1. Select Tax Forms in the Black bar on the left side of the screen.
  2. Select Tools from the drop down menu.
  3. On the Tools Center Select Delete a form.
  4. Locate the form on the list and select Delete.
  5. You will be asked to confirm the deletion.

 This process is to clear any residual information and old calculations off the form.

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mcboler
New Member

I only get $436 out of $1875 Energy-Efficient Vehicles credit, Why?

it is still calculating half the amount based on the month purchased so a January purchase is showing like a July purchase for a Tesla model 3

whileloop
Level 1

I only get $436 out of $1875 Energy-Efficient Vehicles credit, Why?

@mcboler :

 

when I filled out the form, the last screen showed a 7K tax credit which I adjusted down to the right amount. This appears to be wrong, do not edit it. 

I looked at the form that turbo tax sends over to the IRS and it calculates the phase out too. So in my case it was 7K - 50%. I was worried about it attempting to submit 7K on my behalf but it looks like it only submitted for 3750 as I expected. 

 

of course I wouldn’t take this as gospel, see for yourself and make sure your comfortable submitting it, turbo tax did a dreadful job with this form. 

kp199234
New Member

I only get $436 out of $1875 Energy-Efficient Vehicles credit, Why?

yes, I think this is the right way, let turbo tax do the phase out calculation. 

I think it is a really bad look for turbo tax to have such a thing on their software that is not written out clearly. Please fix this! 


AnnetteB6
Expert Alumni

I only get $436 out of $1875 Energy-Efficient Vehicles credit, Why?

Be sure that you do not change the maximum credit amount shown on the screen, otherwise the calculation will not be correct.  

 

Here is the explanation:  

 

TurboTax will calculate your maximum credit based on the details entered for your vehicle and any applicable phase-out based on the purchase date. 

 

On the screen where it shows the amount of credit you qualify to receive, the box at the bottom of the page is showing the maximum credit that would have been allowed for your vehicle had a phase-out not applied.  Your credit may be limited by the phase-out.  If you change the number on that screen, your credit will not be calculated correctly.  

 

The information on the screen says this field is for adjusting the amount of maximum credit if it is does not match the manufacturer's specification.  The number entered here will be the maximum credit that you may receive prior to any limitation being applied.  If you change it, your credit will be based on the number entered.  

 

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