CARMAX did not submit a Form 15400

[geordieontheweb]

I purchased a used (2023) Chevy Bolt EV from Carmax in June 2024.

My return was rejected by the IRS as they couldn't verify my information.

I contacted CARMAX to get a copy of the report and they said that I wasn't eligible for a tax credit.

This doesn't make sense to me because at the time of sale I talked to the salesman about the tax credits.

My wife and I meet the IRS income requirements.

Question 1 - Were we eligible for a tax credit?

Question 2 - If so, what would it have been? $4,000 or $7,5000

Question 3 - Is there any recourse for us to sue CARMAX for the tax credit.

Thank you,

David Dutton

[AnnetteB6]

If you purchased a used vehicle, the maximum credit you could receive is $4000.  It is based on 30% of the sales price up to $4000 maximum.  The sales price must be less than $25,000 to qualify to claim the credit.

Take a look at the following information from the IRS to learn more about the used clean vehicle credit:

Used Clean Vehicle Credit

If you were qualified for the credit and the dealer did not register the sale with the IRS, I do not know of any recourse available to you.  
 

[Miss MCJ2]

Here is a tool where you can enter your VIN to check for a credit

https://evlive.gm.com/live/ev-tax-credit

[geordieontheweb]

That link is for new vehicles.

Do you have any answers to my 3 questions?

[AnnetteB6]

1 - If your vehicle purchase price was less than $25,000, then you should have qualified for the used EV credit.  If it was more than $25,000, then you do not qualify.

2 - The maximum credit on a used EV is $4000, but it could be less.

3 - I do not know of any recourse for CARMAX not filing the form if it was required.

@geordieontheweb 

[geordieontheweb]

They told me that as it was purchased in 2024 and it was not 2 years or older then they didn't need to submit a Form 15400.   Do you know if there is any information on buying a 1 year old EV in 2024?

The term "nonfeasance" would seem to apply in this situation if they are wrong in their assumption.

Any thoughts?

I'm ready to go to war over this.... it's worth it to me to pay for a lawyer as $4,000 is a lot of money to lose.

[AmeliesUncle]

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@geordieontheweb wrote:

They told me that as it was purchased in 2024 and it was not 2 years or older then they didn't need to submit a Form 15400.   Do you know if there is any information on buying a 1 year old EV in 2024?

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They are correct.  For the used EV credit, the vehicle needs to be at least two years old.  The vehicle did not qualify for the $4000 credit.

https://www.irs.gov/credits-deductions/used-clean-vehicle-credit