I purchased an EV in 2024 and transferred $7500 credit to dealer. TurboTax Online is saying that "Total Personal Portion of your New Clean Vehicle Credit is Zero". What does this mean?

[andresu13]

I purchased an EV in 2024 and the $7500 credit was transferred to the dealer at the time of purchase. I got a message in TurboTax online saying that the "Total Personal Portion of your New Clean Vehicle Credit is Zero". My MAGI is under $300,000 (married filling jointly).

Does it mean we don't qualify for the credit and need to return the $7,500? or that the credit was already applied when it was transferred to the dealer and therefore there is no "credit" given in this tax return? The message is confusing. Thanks!

[Vanessa A]

No.  When it says your total personal portion of the EV credit is $0, this means you already transferred the amount to the dealer and cannot claim more of a credit when filing your return.  If you were not eligible and had to pay the credit back you would see your tax due jump or your refund drop by the amount of the credit you claimed at time of sale.  

[andresu13]

Thanks @Vanessa A .

Where can I see if my tax due went up or my refund dropped? I was able to see that number live in TurboTax Online in previous years (number went up or down as I was adding income, deductions, etc) but I can't see that anymore. Where do I see that? Thanks again!

[SusanY1]

For accuracy and simplicity, TurboTax no longer displays this as you go, but you can still choose to view the number at any time following these instructions.

[leed_0001]

I got the same message - "Clean Vehicle Credit Summary - Your total personal portion of your NCV credit is zero." What does this mean?

Will I receive $7500 or am I out of this?

[BrittanyS]

A few items can cause the Clean Vehicle Credit to be $0.  The credit is non-refundable.  This means you must have a tax liability to receive the credit.  The credit will not be added to your refund if your tax liability has already been reduced to $0.  Second, the Alternative Minimum Tax (AMT) must be less than the net regular tax.  If the AMT is more significant, the credit gets disallowed.  You can view form 8911 to see if your AMT exceeds your net regular tax.  The credit would be disallowed if line 16 is more significant than line 18.  

@leed_0001 

[leed_0001]

Hi BrittanyS - thank you but I understood nothing from the response. Don't know what you mean by the credit being non-refundable when I'm trying to apply for $7500 back. I purchased the EV car assuming I would get $7500 back from taxes. I thought it would be easier than what it's feeling like.

(Googling the following: tax liability, Alternative Minimum Tax, Form 8911)

This goes with the same with my state fund for $3000 and also with purchasing the wall connector, all of which I'm unable to get back for some reason. Spending hours on TurboTax and Reddit trying to figure out how I'm able to get the money back.

(Crying...)

[ThomasM125]

By non-refundable, it means you can apply the credit to your tax liability, but not to the extent it is reduced below $0. For instance, your federal tax was $500, you could only apply $500 of the $7,500 credit to it, so the rest ($7,000) would not be paid to you.

You can look at your Form 1040, page two to see your federal tax and the credits against it on lines 19 and 27  - 31:

To view your form 1040 and schedule 1 to 3:

1. Choose Tax Tools from your left menu bar in TurboTax Online while working in your program
2. Choose Tools
3. Choose View Tax Summary
4. See the Preview my 1040 option in the left menu bar and click on it
5. Choose the Back option in the left menu bar when you are done 

You need to be working in your state tax return to see the state tax summary.

@leed_0001