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EV Credit for Tesla 3

After entering our info, TurboTax is giving us the full $7500 EV credit for purchasing a Tesla 3 in September.  What I see elsewhere online is that Tesla EVs are NOT being given full credit and that a September purchase would be eligible for a credit up to $1875. Would love the full credit; would not love an audit. Do I trust TurboTax on this?

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41 Replies
DianeC958
Expert Alumni

EV Credit for Tesla 3

Yes the tax credit for purchasing an Electric Vehicle is $7500 for 2019.

 

Link to Filing Tax Form 8936

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luigi65
Returning Member

EV Credit for Tesla 3

I am in the same situation, the interview does not ask for what the credit should be.   TTax computes and allows full credit of $7500.00 when the qualifiers of KWH are present.  

 

Will Intuit/Turbo Tax cover any issues/penalties should IRS reject returns or charge back monies?

What guarantee is there the computation of 7500.00 credit is 100% accurate? 

 

BarbaraW22
Expert Alumni

EV Credit for Tesla 3

The Qualified Plug-in Electric Drive Motor Vehicle Credit or Form 8936 is not calculating correctly. The tentative credit is showing as too high. 

 

This issue is projected to be fixed by 02/21/2020.

 

You can sign up here to receive email notifications when updates related to this issue become available.

 

Please see this TurboTax Help Article for more information.

 

@Playcool

 

@luigi65

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EV Credit for Tesla 3


@Playcool wrote:

Do I trust TurboTax on this?


No, because TurboTax will give you the full credit ($7,500). Use the link below for accurate figures.

 

https://www.fueleconomy.gov/feg/taxevb.shtml

EV Credit for Tesla 3

Thank you BarbaraW22 - you confirmed what I suspected and provided the links I needed.  I know TurboTax was being criticized for not having 8936 ready to go earlier, but I think I'd have preferred they waited until it was right.

EV Credit for Tesla 3

It's too bad they released it BEFORE getting it right. My return was rejected because of their error.

It should have been delayed until it was ready.

SHAMEFUL

rprewer
New Member

EV Credit for Tesla 3

I had this problem too. I bought my Tesla in September 2019. When I first entered it, the 7500 came up but it allowed me to key in $1875. Later, when I went back to file my taxes, it further reduced the 1875 by 25% and I didn't realize it until it was already submitted. I'm guessing the form was updated between when I first entered it and filed it. I'm waiting to see if the IRS accepts it or not, as that was the recommendation when I called Turbotax. I wish there was more help offered, since this was clearly a glitchy issue on their end.

sgottscho
New Member

EV Credit for Tesla 3

It looks like the calculation is fixed, but my return was rejected with the same error code. When is this going to be fixed?

EV Credit for Tesla 3

Same here.  Very annoying.   

 

Instructions:

1. Update Turbo Tax on the 20th to correct 8936 form.  Check.

2. Resubmit. Check.

3. Rejected again for same reason.  Fail.

EV Credit for Tesla 3

EV Credit for Tesla 3

My return was rejected the other day. I waited until today when it was promised to be fixed. Now, it's not allowing me to take the full credit. We purchased in November and are therefore entitled to the $1875. TurboTax is only letting me take a little over $400 claiming I have other deductions. Which I don't, because even without the car, I'd still be getting a refund. I'm very confused and am not going to pay $50 just to find an answer to something that seems to be an error on TurboTax's part. 

EV Credit for Tesla 3

My tax forms were rejected and the math shouldn’t matter for my credit because I bought a Honda Clarity Plug In and they haven’t even sold nearly enough to start the phase out process so I get the $7500 credit for sure.  Yet mine was still rejected.  Looks like IRS is rejecting all Turbo Tax filings due to this error... even if the math works out correctly!

sgottscho
New Member

EV Credit for Tesla 3

It is supposed to be fixed tomorrow, but make sure you change the $1875 back to $7500. Turbotax automatically calculates the 25% phase out rate to change the $7500 to $1875.

rprewer
New Member

EV Credit for Tesla 3

Mine did get rejected and I was able to re-submit. I had to go back through the steps for this credit and enter the full 7500, and then it did adjust correctly and tell me that I was eligible for 1875. My re-submitted federal return was accepted a few hours later, so they might have it sorted out now.

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