Clean Vehicle Credit for S Corp

[Dapack1974]

How to add Form 8936 "Clean Vehicle Credits" in turbo tax Business (S corporation) software? Please advise how to claim the $7500 credit for K1s.

[PatriciaV]

Form 8936 and Schedule A for that form are not supported for TurboTax Business. You can find these forms from the IRS website (links below). 

Once you have calculated the amount on Form 8936 Part II Line 8, you can enter this using Forms Mode in TurboTax on Form 1120S p5-6 Line 13 (under Credits) in the extra line below Code O. Use the drop-down to select Code AY (New Clean Vehicle Credit) then enter the amount in the box to the right. The total will be allocated to all partners on Schedule K-1 Box 13 Code AY.

IRS links to forms & instructions:

• Commercial Clean Vehicle Credit
• Instructions for Form 8936 (2024)
• Form 8936
• Form 8936 Schedule A, Clean Vehicle Credit Amount

[felixkfkuo]

Since Form 8936 and Schedule A are not supported  for TurboTax Business, can business return still be filled electronically without 8936 and Schedule A? Or we have to fill them manually by including Form 8936 and Schedule A?  

Where do I mail it? Do I mail it with a copy of the 1120S?

[PatriciaV]

No, Form 8936 and Schedule A cannot be filed separately from an e-filed business return. You would need to print, sign, and mail the entire return in order to include those forms.

The filing instructions included with the PDF of your return will include instructions on where to mail the signed return. We recommend using certified US mail, return receipt requested. The filing deadline is the same as for an e-filed return.

@felixkfkuo

[Trinity8]

Saw your post and did the calculations on F8936 already. 1) What is the step by step instructions to input the 7,500 credit into my 1120s in TurboTax? I tried to follow your instructions and input the credit on k1 but it didn’t let me. 1a) Is there somewhere other than k1 I should input I input the info? 1b) like on the 1120s itself? 2) I should attached my F8936 and file it with my 1120s, correct? 2a) Since it won’t allow me to attach a form on turbos tax, I need to manually print and mail my 1120s & F 8936 correct? Please advise. Thanks 

[PatriciaV]

As previously posted:

Once you have calculated the amount on Form 8936 Part II Line 8, you can enter this using Forms Mode in TurboTax on Form 1120S p5-6 Line 13 (under Credits) in the extra line below Code O. Use the drop-down to select Code AY (New Clean Vehicle Credit) then enter the amount in the box to the right. The total will be allocated to all partners on Schedule K-1 Box 13 Code AY.

1a&b) No entries are made on Schedule K-1, only on Form 1120S.

2) Yes, include Form 8936 with your printed return.

3) Yes, print, sign, and mail the forms required for filing to the address on the filing instructions provided by TurboTax.

@Trinity8 

[felixkfkuo]

I see that for 1120S (Federal), I need to mail the 1120S in with From 8936+Schedule A. 

But what about for state? I am in California. So should I also mail the 100S with the Form 8936 + Schedule A to California FTB? Or I can e-file my 100S to CA via Turbotax Business w/out the Form 8936+Schedule A?