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derian93
Returning Member

In 2024, I purchased an EV and transferred the credit to dealer at sale. When filling form 8936, it says "Your total personal portion of New Clean Vehicle is Zero", why?

I transferred the credit for purchasing clean EV to the dealer, which they deducted at point of sale. I am eligible for this credit based on prior year AGI (per IRS website). However, when filling out the Clean Vehicle Credit, it says personal portion is zero. What does this mean? Does it mean I am not eligible for the 7500 or it just means no additional credit can be claimed? Do I have to pay the credit back? I am sure I'm eligible based on 2023 AGI. Thank you for your help!

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9 Replies

In 2024, I purchased an EV and transferred the credit to dealer at sale. When filling form 8936, it says "Your total personal portion of New Clean Vehicle is Zero", why?

You transferred the credit to the dealer and got a lower price for the vehicle purchase.  You are not eligible for the credit.

derian93
Returning Member

In 2024, I purchased an EV and transferred the credit to dealer at sale. When filling form 8936, it says "Your total personal portion of New Clean Vehicle is Zero", why?

The IRS sent me a mail to submit form 8936 Schedule A, which basically is what I am doing, but the response is total personal portion is zero. I am not sure if it means there wont be additional credit or I am not eligible for the 7500 to begin with, which I am sure I was based on 2023 AGI. If not what’s the purpose of submitting this form? 

In 2024, I purchased an EV and transferred the credit to dealer at sale. When filling form 8936, it says "Your total personal portion of New Clean Vehicle is Zero", why?

did you get your answer yet? I have same issue

In 2024, I purchased an EV and transferred the credit to dealer at sale. When filling form 8936, it says "Your total personal portion of New Clean Vehicle is Zero", why?

I also noticed turbotax does not correctly calculate whether you are eligible or not for the tax credit.  The IRS website  states:

 

 "You can use your modified AGI from the year you take delivery of the vehicle or the year before, whichever is less. If your modified AGI is below the threshold in 1 of the 2 years, you can claim the credit."

 

https://www.irs.gov/credits-deductions/credits-for-new-clean-vehicles-purchased-in-2023-or-after

 

Also --  Turbotax does not allow users to fill out form 8936 or Schedule A (Form 8936) to calculate if the user transferred the tax credit to the dealer and then made more than the max amount allowed of AGI, and whether the user has to repay the credit or not.   In my case I transferred the credit but made more than max amount but turbotax doesn't allow me to fill out the forms to show that I owe the $7500 back to IRS.

 

 

Swimmerbhs
Returning Member

In 2024, I purchased an EV and transferred the credit to dealer at sale. When filling form 8936, it says "Your total personal portion of New Clean Vehicle is Zero", why?

I had tax liability but still got a refund. so i will get to use half the credit. When reviewing the document nothing comes up in part 2-4.  have not submitted it. but was on the phone with support for 20 minutes and then was hung up on. 

 

 

andresu13
Returning Member

In 2024, I purchased an EV and transferred the credit to dealer at sale. When filling form 8936, it says "Your total personal portion of New Clean Vehicle is Zero", why?

I am in the same situation. I got the message saying that the "Total Personal Portion of your New Clean Vehicle Credit is Zero". I transferred the $7500 credit to the dealer when I bought the vehicle. My MAGI is under $300,000 (married filling jointly).

 

This message is confusing. 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?

DianeW777
Employee Tax Expert

In 2024, I purchased an EV and transferred the credit to dealer at sale. When filling form 8936, it says "Your total personal portion of New Clean Vehicle is Zero", why?

The credit will be zero on the tax return if it was transferred to the dealer.  I understand how it could be confusing.

 

At your income level and for a new car the credit is $7,500, for your situation.  Below is the rules should you have a 'Recapture Event'.

Recapture event —

(i) In general. A recapture event occurs if, within 3 full years from the date a qualified electric vehicle is placed in service, the vehicle ceases to be a qualified electric vehicle. A vehicle ceases to be a qualified electric vehicle if—

  • (A) The vehicle is modified so that it is no longer primarily powered by electricity;
  • (B) The vehicle is used in a manner described in section 50(b); or
  • (C) The taxpayer receiving the credit under section 30 sells or disposes of the vehicle and knows or has reason to know that the vehicle will be used in a manner described in paragraph (b)(2)(i)(A) or (B) of this section. (ii) Exception for disposition. Except as provided in paragraph (b)(2)(i)(C) of this section, a sale or other disposition (including a disposition by reason of an accident or other casualty) of a qualified electric vehicle is not a recapture event.

@andresu13 

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DAC211
New Member

In 2024, I purchased an EV and transferred the credit to dealer at sale. When filling form 8936, it says "Your total personal portion of New Clean Vehicle is Zero", why?

I have the same problem with TurboTax. So I added it as "Miscellaneous Income".  Next problem is how to get the form electronically attached for submission.  I may just end up printing it and mailing all the forms together (including the 8936 and its schedule 1) via snail mail.  Disappointed in TurboTax on this one.

In 2024, I purchased an EV and transferred the credit to dealer at sale. When filling form 8936, it says "Your total personal portion of New Clean Vehicle is Zero", why?

you do not report the EV credit as income. you transferred the credit to the dealer so you already got the tax benefit. If you don't qualify all that is needed is completing the 8936/schedule A  (TurboTax says they're ready) and indicating the credit was transferred to the dealer. Turbotax will add any unallowed credit to your tax liability, not to your income. This will flow to schedule 2 line 1b

 

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