It seems to be common that the Alternative Vehicle Refueling Property Credit claimed on Form 8911 is often disallowed or calculated to be $0 without any explanation.
There are two possible reasons for this.
- Your tax liability must be high enough to claim the credit since. It is non-refundable and can only be used to reduce your tax liability.
- The tentative minimum tax calculation has caused it to be disallowed.
- The tentative minimum tax is the Alternative Minimum Tax (AMT) which is calculated in parallel with the 'traditional' income tax calculation. Even though you may not be subject to AMT, if your tentative AMT tax is greater than your net regular tax, then the Form 8911 credit is disallowed.
You can look at your Form 8911.
If Line 17 (tentative minimum tax) is greater than line 16 (net regular tax), then the credit is disallowed regardless of whether you are subject to Alternative Minimum Tax or not.
Please see IRS Instructions for Form 8911 Alternative Fuel Vehicle Refueling Property Credit. The specific section to read is -- Line 17.
Line 17 comes from Form 6251 Alternative Minimum Tax - Line 9.
Als see Form 8911.
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