Cannot claim EV Credit and EV Home Charger Credit at the same time?

[polestarusa]

I am using TurboTax Deluxe to file my tax this year and ran into a weird problem. I appreciate any insights here.

I have purchased both an EV and installed a home EV home charger in 2022.

When I entered the information on the costs of EV home charger into TurboTax Deluxe, I received credit for 30% of the costs.

However, when I entered the information for my EV vehicle, I received the full $7,500 EV credit but the EV home charger credit went into ZERO.

My tax obligations are much larger than the credits combined, so I am very confused. I tried to search online and I did not find any information that I cannot claim both EV and EV home charger credits at the same time? Or the issue is due to the version of Turbo Tax (Deluxe) that I am using?

I am wondering whether anyone had a similar experience and can share any tips to get both credits at the same time when filing the tax return?

[MichaelG81]

Yes, all credits are added up before figuring the EV charger credit on Form 8911. Calculating all credits includes the EV Car (up to $7,500) if you purchased one too. If your credits before claiming the Form 8911, Alternative Fuel Vehicle Refueling Property Credit are more than your tax on line 16 of your 1040, then you will lose the credit or it'll show zero. 

It takes into account additional credits first like the CTC or Child Tax Credit (schedule 8812), Home Energy Credits (Solar), EV Vehicle, Retirement Savings Credits, ‌and more, all added together. And, if credits are more than your tax, you will unfortunately lose the credit from Form 8911 EV Charger, it won't‌ carry forward, according to current guidance. 

See Form 8911, on how it's calculated, if using a desktop ‌version you can get this information from your Forms Mode in Form 8911. Again, if other credits including solar and others add up to more than your tentative tax, you will lose credit forever, according to current guidance. 

@polestarusa 

[polestarusa]

Thanks Michael for your information! 

I have been very busy and I am still trying to figure out if the credits are more than my tax obligations. I will report back once I have a chance to look into the issue. 

[polestarusa]

Hi Michael,

I have had a chance to look at Form 8911 and my 1040 on my Desktop version of Turbo tax, I am still confused why I don't get the EV Charger credit.

The EV charger credit on line 13 of Form 8911 is $926.

The line 16 of my 1040 is more than $30,000., and line 24 is more than $20,000.

Hence, shouldn't I get the EV Charger credit since my total tax is greater than all the existing credits?

Thanks a lot in advance!

[AnnetteB6 · Accepted solution]

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.  One, you must have a high enough tax liability in order to claim the credit since it is non-refundable and is only used to reduce your tax liability.  Or two, the tentative minimum tax calculation is causing 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.  When your return is complete, it will be determined whether you are required to be subject to AMT or not.  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.

Take a look at your Form 8911.  The amounts reported on lines 16 and 17 may explain why you are not eligible to claim the credit.  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.

This situation is outlined in the IRS Instructions for Form 8911 if you care to read more.  This is the specific section to read -- Line 17.

@polestarusa 

[polestarusa]

You are right. The tentative minimum tax on line 17 is greater than net regular tax on line 16 in Form 8911. So I guess I cannot claim the EV charger tax credit?

[PattiF]

Yes, you are correct that you are not eligible to claim the credit as @AnnetteB6 explained previously.

@polestarusa 

[J Miller]

Does anyone know if the credit will carry over to next year? We cannot get charger credit due to AMT but usually don't have combined credits. Thoughts?

And thank you for the explanation as I could only find by reading the forms and nothing in any publications regarding this limitation.

[PattiF]

Unfortunately, the credit will not carry over to the next year. 

Here are instructions from the IRS for Form 8911 for Line 19:

Line 19

If you can’t use part of the personal portion of the credit because of the tax liability limit, the unused credit is lost. The unused personal portion of the credit can’t be carried back or forward to other tax years.

@J Miller