Tax Year Prior to 2020: Form 8936 (2019)

[Anonymous]

I'm using the online version of the software, and see that the Energy-Efficient Vehicle section is available, HOWEVER after entering my details about my Tesla Model 3 that I purchased 3/19/2019, it's calculating the credit at $7,500 - but that is incorrect because according to the IRS website, the phase-out period began. $7,500 only applies to vehicles purchased by Tesla before 12/31/2018, for vehicles purchased between 1/1/2019 through 6/30/2019 the credit should be $3,750. (See here: https://www.irs.gov/businesses/irc-30d-new-qualified-plug-in-electric-drive-motor-vehicle-credit under the Tesla, Inc - Phase Out initiated dropdown).

I think TurboTax should be calculating this better, otherwise some people might get more than they should, and get in some amount of trouble if they get audited.

[shareef777]

Oh boy, turbotax has really dropped the ball on this one. The form is FINALLY available, but it's calculating the wrong credit for vehicles that have started to phase out (Tesla and GM).

[nexus444]

I ran into the same issue today when I finally saw the form was available.  You just have to manually enter the correct amount.

[nexus444]

You have to be easy on their programmers.........that calculation is a little difficult for them ($7,500/2 or $7,500/4).

I am just glad the stupid form is finally available so I can finish my taxes.  After waiting over 3 weeks, I don't care at this point if I have to do the calculations manually as long as I can submit it.

But this experience will probably cause me to go with a different company's product next year.

[DaveF1006]

We appreciate your patience.  You will be able to use TurboTax to claim your Motor Vehicle Credit. The IRS just released Form 8936, Qualified Plug-in Electric Drive Motor Vehicle Credit yesterday.  This form is needed to claim the credit.  

While the form was released yesterday, it is not calculating correctly. We’re working on a solution to this issue. Please “click here” to receive email notifications when any updates related to this issue become available.

 edited 02/13/2020 10:53 AM

[Anonymous]

"We are working fast to get this update into the TurboTax software.  Form 8936 will be available by March 8, 2018."

huh? The last "Employee Expert" replied a bit ago already and said the form would be available *tonight*, and, indeed, it is now available.

It's just calculating the wrong credit for vehicles that have started to phase out.

Edit:  Also... 2018 was 2 years ago? What even is this weird reply. Was this a bad copypasta?

[shareef777]

Thanks for the tip. Now just have to wait for form 8911 to be available. At this rate, I just hope I don't need to file an extension with the IRS. 

[shareef777]

I'm almost convinced that these "experts" are just automated bots pasting the same constant canned messages.

[CDinCA]

Form 8936 (Plug-In Vehicle Credit) appears incorrect after the 2/12/2020 update.  Before the update 8936 was correctly applying the phase-out percentage (line 4b) to the max available credit (4a) to calculate the tentative credit (4c). After the update 8936 does not apply the % on line 4b, it carries the full amount from line 4a to line 4c.

[Anonymous]

"Before the update" the form wasn't available at all in TurboTax

[KyleG]

@CDinCA I see what you mean when I look at the actual form.  I had to override the $7,500 TurboTax "calculated" to $3,750.  They then put $3,750 in line 4a, 50% in line 4b, and $3,750 in line 4c. So the end credit is correct, but they didn't use the correct calculations to get there.  It should have been $7,500 in 4a and $3,750 in 4c.  Hopefully the IRS won't try to tell me I only should have gotten $1,875 and tell me I owe them the difference in about 6 months when they get around to reviewing returns.

[shareef777]

Which is why I'm holding off on submitting till the bug is fixed.

[danefam12]

My refund was already in the positive. I definitely did not owe any money, and the refund for this form is only giving 2665 of the 4609 that I am supposed to get. ya'll about to lose a customer....

[kayak]

It wont be six months, the average is 2 years.  That way they get more interest on the difference and penalty.  

[Pavo180]

Correct, there is an error, in calculating the 50%.  If you manually fix it to $3750.  The form 8936 , is filled out incorrectly.  IRS, might flag this, and delay your refund. If you don’t catch it, it says, you get back the full amount $7500.  
I wish there was a way to manually override the form.