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tf21
New Member

In 2021, we purchased a Hybrid Pacifica which qualifies for the $7500 tax credit. How do you enter this in TurboTax?

TurboTax online doesn't ask me in deductions so I don't understand how to get it to generate the form.
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DavidD66
Expert Alumni

In 2021, we purchased a Hybrid Pacifica which qualifies for the $7500 tax credit. How do you enter this in TurboTax?

To apply for the Plug-in Electric Drive Motor Vehicle Credit, you will follow the steps below once you are in your return:

  • Click on Deductions and Credits
  • Locate Cars and Other Things You Own
  • On Energy Efficient Vehicles, click on Start
  • You may also see this TurboTax support FAQ on the vehicle credit:

For more information on the electric vehicle credit, see the following IRS web page: Plug-In Electric Drive Vehicle Credit (IRC 30D)

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2 Replies

In 2021, we purchased a Hybrid Pacifica which qualifies for the $7500 tax credit. How do you enter this in TurboTax?

It's a credit (subtraction from taxes due), not a deduction (subtraction from income, before taxes are calculated), and is reported on Form 8936.  I believe you access it here:

  • Click on the Federal Income tab.
  • Click on Deductions & Credits.
  • Scroll down to Cars and Other Things You Own.
  • Click Start/Edit/Update next to Energy-Efficient Vehicles.
DavidD66
Expert Alumni

In 2021, we purchased a Hybrid Pacifica which qualifies for the $7500 tax credit. How do you enter this in TurboTax?

To apply for the Plug-in Electric Drive Motor Vehicle Credit, you will follow the steps below once you are in your return:

  • Click on Deductions and Credits
  • Locate Cars and Other Things You Own
  • On Energy Efficient Vehicles, click on Start
  • You may also see this TurboTax support FAQ on the vehicle credit:

For more information on the electric vehicle credit, see the following IRS web page: Plug-In Electric Drive Vehicle Credit (IRC 30D)

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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