I bought an EV that qualifies for the tax credit, but my dealer didn't report the sale. Can I still claim the credit?

[odomerin2014]

When I contacted the dealer for the sellers report, they said they didn't file it and could not back date it. Can I still claim the credit? If so, how?

[Vanessa A]

Yes, if you did not transfer the credit or they did not file it, then you would be able to still claim the EV credit on your return.  If for some reason your return is rejected for the EV credit, it is possible that they somehow reported it and you would then have to straighten that out with them and the IRS's guidance.

To claim the credit you will select the following

1. Deductions and Credits
2. Scroll down to cars and other things you own
3. Select start next to Energy Efficient Vehicles

or you can use the search bar and enter Energy Efficient Vehicles and Jump To Energy Efficient Vehicles.

As you walk through the questions you will be asked if you transferred the credit to the dealer.  Here you will answer NO since they said they did not file it.  Continue through to the end and it will show you the credit you are qualified for.

Things to remember about this credit:

• It is worth UP to $7,500 depending on the vehicle you purchase
• It is a nonrefundable credit.  This means it will reduce your tax liability by up to $7,500 but will not result in a negative number or a tax refund of money you did not pay in or have withheld.
• The credit cannot be carried forward
• You can use your income for the year you take delivery or the prior year if your income in the previous year was below the threshold if it is above the threshold in the current year. 
• In order to qualify your AGI must be less than:
  • $300,000 if Married Filing Joint
  • $225,000 if Head of Household
  • $150,000 if single or Married Filing Separate
• Vehicle Qualifications are as follows:
  • Vans, SUVS, and Pickup Trucks my have an MSRP of no more than $80,000
  • Other vehicles must have an MSRP of no more than $55,000
    • The MSRP does not include destination charges, options added by the deal (seal coating, extended warranty, etc.) taxes, fees, or manufacturer discounts or incentives. Basically, it does not matter if you strike a good deal on the vehicle if the Manufacturer says it is worth more than the limit, it does not qualify.
  • Final Assembly must be in North America
  • The amount of the credit may be affected by date placed in service
    • January 1, 2023-April 17, 2023 credit of $2,500-$7,500
    • April 18, 2023 credit amount is $3,750 to $7,500
  • Click here to enter your VIN to see if your vehicle qualifies

Credits for new clean vehicles purchased in 2023 or after

[rjbowe]

The vehicle I purchased on 11/15/2024 is eligible for the EV Tax Credit, however the Dealer did not file the IRS Clean Vehicle Sellers Report form. What documents do i need to provide to the IRS to get this Credit? Can I still file electronically? 

[DaveF1006]

To claim the EV Tax Credit for your vehicle, you'll need to provide the following documents to the IRS:

1. Proof of Purchase: This includes the bill of sale or purchase agreement that shows the date of purchase, vehicle identification number (VIN), and the purchase price.
2. Form 8936: You must file Form 8936, Clean Vehicle Credit, with your tax return for the year in which you took delivery of the vehicle.
3. Time-of-Sale Report: If the dealer did not provide the IRS Clean Vehicle Sellers Report, you should contact the dealer to obtain a copy of the report. This report is essential for claiming the credit.

If you do not have a successfully submitted time-of-sale report, you are not eligible to claim the credit. However, you can still file your tax return electronically and include Form 8936 with your submission.

IRS.gov

[AmeliesUncle]

If the dealer didn't file their required information with the IRS, it does not qualify for the credit (unless there is a first-year exception that I am not aware of).

You may want to have a talk with the dealership about why they did not file it.

[Trueville]

Hello, I bought an EV but the dealership did not give me a time of sale report. I tried to get it after the fact and they just gave me the run around. I even went as far as hiring a lawyer to represent me to try and get this document and they did not respond to the lawyer either. I think that this is such an unfair rule from the IRS because now you are under the dealerships mercy. This has been a very unpleasant experience. If I would have read  through all the pages for the rules on this, I probably would have just walked away from the deal. I was unaware that I needed that report even if I dont get the credit at the time of sale. I figure I will just claim it at the end of the year at tax time. Unfortunately, that is not how it works. The dealership played dumb too when I brought it up and that should have been the red flag for me to walk away. Too many unethical dealers to let trust them to do the right thing. Now that I think about it, when I was in finance, they asked for my social security number…why would they want that if they already ran my credit and secured a loan? You do need it for the to claim the report. I really hope they didnt claim the rebate and just never gave it to me. Either way, is there anyway I can still claim this rebate because I spent a lot of money thinking I was going to get it back. I upgraded my electrical panel, added an EV charger in the garage and gave myself that rebate by putting it as a downpayment. I know there is also a tax credit for the EV charger but that is no where near as much as what I already spent. Please help if you can. 

[Mike9241]

and gave myself that rebate by putting it as a downpayment. please clarify what this means. down payment on what?  

[Trueville]

Hello, thank you for your reply. I pretty much took 4k out of my own money and used it towards the purchase of the EV in hopes that I would get it back when I did my taxes. That is what I meant about giving my self the rebate. 

[Vanessa A]

You can attempt to claim the credit by printing and mailing your return with the proof of sale, form 8936, and form 8936 Schedule A.  Form 8936 and Schedule A 8936 will print with your return.  

This is not a guarantee that you will be able to claim the credit, but it can at least get it looked at to see if they will accept it.  If you try to do it electronically, it will be rejected due to the VIN not being submitted by the dealer. 

[Trueville]

Thank you for your feedback. I will mail in my tax documents this year. I would I be able to pay for your services this year? I usually do my taxes my self but I did a lot of extra things with going green this year that I might need some help to maximize my return. 

[LindaS5247]

You can use the TurboTax program to complete your tax return and then print and mail it in.

If you used TurboTax Online you can:

1. Sign in to TurboTax.
2. Continue your return
3. Select File in the menu.
4. You'll see 3 steps. Complete Steps 1 and 2
5.  if you haven’t already, then select Start or Revisit next to Step 3.
6. On the screen that says "We've determined the easiest way to file your taxes" screen, 
7. Select "Change" next to the return you want to file by mail, and 
8. Select File by mail on the next screen. Make sure you save your return.
   • If the File by mail option isn’t available, you probably previously selected to pay your TurboTax fees through your tax refund. To file by mail, you’ll need to instead pay with a credit or debit card. Here’s how to change your payment method from pay by refund, to pay by credit or debit card. Once you change your payment method, you'll see the File by mail option as described above. Select this and continue to the next step.
   • Note: You’ll need to pay any tax balance due by check when you file by mail.
9. Update the payment method for your TurboTax fees for all of the tax returns you wish to file by mail.
10. Follow the instructions to print your return(s). If you haven't already paid any outstanding TurboTax fees, you'll be prompted to do so before you can print.

If you are using TurboTax Desktop, you can:

1. Open your tax return and select the File tab, then select Continue.
2. On the screen that says " E-file Your Federal Return", 
3. Select" File by mail" and then " Continue".
4. Continue through the screens until you get to the screen that says "Print Tax Return for Mailing"
5. Select "Continue".
6. On the next screen, select "Print Returns to Mail", then 
7. Select "Preview Print Copy". 
8. Once the preview has opened, select the printer icon..
9.  
10. When finished, select "Continue" in TurboTax and follow any additional onscreen instructions.

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