EV home charging equipment installed on 06/30/2022

[psen]

I got my charger installed on 6/30/2022, before the IRA was passed. Is the 30% credit (up to $1000) retroactive till 1/1/2022 or valid only for installations after 8/16/2022?

[Irish22_CPA · Accepted solution]

What is the Tax Write Off for EV Chargers?

The federal tax credit for electric vehicle chargers originally expired on December 31, 2021. However, the Inflation Reduction Act’s Alternative Fuel Refueling Property tax credit extends the EV charger tax incentive ten years—through December 31, 2032.

So, what does that mean for you? Essentially, if you install a home EV charging station, the tax credit under the Inflation Reduction Act is 30% of the cost of hardware and installation, up to $1,000. 

So a charger station purchased anytime during 2022, even before the legislation was passed, qualifies for the extended 30% credit.

Good news for you!

[Esther M]

Prior to the Inflation Reduction Act a tax credit was available for electric charging stations put in place by businesses and main homes prior to January 1, 2022. The new law extends the credit for charging stations put in service before January 1, 2033. The new law extends the time, the credit is the smaller of 30% of the property’s cost or $1,000. So you're covered! 

[AHancock]

So why isn't that reflected already in the 2022 Turbotax software?  See Note:

Note: The Energy-Efficent Vehicle Charging Station Credit is a "temporary" tax provision. At the time of this release of TurboTax, this credit has expired and is no longer allowed in 2022.

However, temporary credits that have expired often are renewed retroactively, sometimes long after the end of the tax year in which they expired. We continue to collect info about expired credits in TurboTax, but we will not include this information in your return unless and until the expired credit is renewed. If this credit is renewed, we will add it to your return if applicable, as well as help file an amendment if you have already filed without this credit

[SteamTrain]

@AHancock 

Yeah, it would be nice if TTX could have updated the software to include the changes made months ago...BUT they don't include the new tax rules in the software until a week or two AFTER the IRS updates their actual form 8911 for 2022....and the IRS still hasn't issued the official 2022 form 8911, nor it's instructions yet  (appears to be scheduled for December some time).   Thus, TTX may not have all that integrated until sometime around late Dec or the first of January.

Draft Tax Forms | Internal Revenue Service (irs.gov)

Same thing goes for any IRS forms needed that are also in Draft Form now (like form 5695 for home energy credits).  TTX doesn't update the software until the IRS releases the new form with any new tax rules...and instead continues to use last year's tax rules until those forms are out of Draft Mode.  Just the way it is....every year.

____________________________

Early releases of TTX software require MANY updates before they are anywhere near being accurate.  Late Jan-to-mid Feb at the earliest.   Folks who start prepping their actual entries before that date, for anything more than really simple income items, they get uselessly frustrated (Every Year !! without fail)   as a result, I myself am unlikely to bother getting/loading the software until sometime in January.

[jorgenchr]

How do I report an error around this in the 2022 Home & Business product? It currently does NOT reflect

that the law was updated to reflect that EV charges purchased from 12/31/2021 can be deducted.  The product and its help file tells me the credit is expired

[DoninGA]

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@jorgenchr wrote:

How do I report an error around this in the 2022 Home & Business product? It currently does NOT reflect

that the law was updated to reflect that EV charges purchased from 12/31/2021 can be deducted.  The product and its help file tells me the credit is expired

---

The IRS Form 8936 Qualified Plug-in Electric Drive Motor Vehicle Credit is estimated to be finalized and available in TurboTax on 01/26/2023

https://form-status.app.intuit.com/tax-forms-availability/formsavailability?albRedirect=true&product...

The IRS Form 8911 Alternative Fuel Vehicle Refueling Property Credit is estimated to be finalized and available in TurboTax on 01/26/2023

[mpawlowskee]

This requires immediate update.  EV charger credit is restored in IRA.

[DoninGA]

---

@jorgenchr wrote:

How do I report an error around this in the 2022 Home & Business product? It currently does NOT reflect

that the law was updated to reflect that EV charges purchased from 12/31/2021 can be deducted.  The product and its help file tells me the credit is expired

---

Note that the Form 8911 Alternative Fuel Vehicle Refueling Property Credit has not yet been finalized and is estimated to be available in TurboTax on 02/02/2023

Go to this TurboTax website for federal and state forms availability - https://form-status.app.intuit.com/tax-forms-availability/formsavailability?albRedirect=true&product...

[deniseweintraut]

I am doing my taxes on April 12, 2022, and this still is NOT working. How do I fix this?

[JohnW152]

If you’re claiming the charging station credit and it’s being limited to zero, it’s most likely because of other credits you're receiving. 

Please read through this to see whether or not this applies to you. It's a complicated explanation and it relates to alternative minimum credit (AMT), but can affect taxpayers who aren't subject to AMT..

If it doesn't apply to you, please post back. 

You may be seeing your charging station credit limited, or reduced to zero, if you've claimed these credits:

• Child tax credit or credit for other dependents from Schedule 8812
• Credit for child and dependent care expenses from Form 2441
• Education credits from Form 8863, line 19
• Retirement savings contributions credit from Form 8880
• Residential energy credits from Form 5695
• Adoption Credit from Form 8839
• Credit for the elderly or disabled from Schedule R
• Alternative motor vehicle credit from Form 8910
• Qualified plug-in motor vehicle credit from Form 8936
• Mortgage interest credit from Form 8396
• District of Columbia first-time homebuyer credit from Form 8859 
• Qualified electric vehicle credit from Form 8834 
• Partner's Additional Reporting Year Tax from Form 8978

Even if these credits, combined, wouldn't be enough to offset your tax, your charging station credit may be limited.

There's a limitation on claiming the refueling credit that's not always apparent when you're working on your return, and it's quite possibly the cause of what you're seeing.  It's called tentative minimum tax.  It's related to Alternative Minimum Tax, but isn't quite the same thing. 

If you have significant credits, as described below, your ability to claim the charging station credit may be limited by tentative minimum tax, even if you don't owe Alternative Minimum Tax.

In determining whether you can claim the refueling credit, the TurboTax program takes into account the computation for net regular tax, which is a computation made on line 16 of Form 8911, Alternative Fuel Vehicle Refueling Property Credit.  (Please see the linked form; this is an involved computation, and seeing it might make this easier to visualize.)  This amount equals your regular tax before credits (line 14), minus certain credits reflected on line 15. 

This net regular tax is then compared to your tentative minimum tax (line 17).  If your tentative minimum tax is greater than your net regular tax, you can't claim the credit. 

If you'll look at Form 8911, linked above, you'll note that line 15 reflects credits that reduce your regular tax (line 14) before the alternative fuel vehicle refueling property credit can be applied.  This includes foreign tax credit on line 15a.

But it also includes certain credits included on line 15b.  If you'll look at Line 15b in the Instructions for Form 8911, the taxpayer is instructed to:

Enter the total of any credits on Form 1040, 1040-SR, or 1040-NR, line 19, and Schedule 3 (Form 1040), lines 2 through 5, and 7 (reduced by any general business credit reported on line 6a, any credit for prior year minimum tax reported on line 6b, or any credit to holders of tax credit bonds reported on line 6k).

So, line 15b is:

• Form 1040, line 19, which is Child tax credit or credit for other dependents from Schedule 8812, plus
• Schedule 3 (further down the page in the link), line 2, which is Credit for child and dependent care expenses from Form 2441, line 11, plus
• Schedule 3, line 3, which is Education credits from Form 8863, line 19, plus
• Schedule 3, line 4, which is Retirement savings contributions credit from Form 8880, plus
• Schedule 3, line 5, which is Residential energy credits from Form 5695, plus
• Amounts totaled into Schedule 3, line 7 from
  • Line 6c, Adoption Credit from Form 8839
  • Line 6d, Credit for the elderly or disabled from Schedule R
  • Line 6e, Alternative motor vehicle credit from Form 8910
  • Line 6f, Qualified plug-in motor vehicle credit from Form 8936
  • Line 6g, Mortgage interest credit from Form 8396
  • Line 6h, District of Columbia first-time homebuyer credit from Form 8859 
  • Line 6i, Qualified electric vehicle credit from Form 8834 and
  • Line 6l, Partner's Additional Reporting Year Tax from Form 8978

And, if you have any of these credits, they can lower your net regular tax from what your regular tax amount is. 

In the end, net regular tax on line 16 equals line 14 (regular tax before credits) minus line 15 (the foreign tax credit plus any of the credits listed above).

If your tentative minimum tax on line 17 is greater than the net regular tax amount on line 16, you can't claim the refueling property credit.

@deniseweintraut