I added the Tesla model 3 that I bought in July 2018 for getting the EV credit, Turbotax says that I got the credit but my tax due (>7500) did not get reduced. Help!

[Vanessa]

What number do you have on line 11 of your 1040?

[psarkar24]

I looked into this in more detail, it appears that in the calculation for form 8801, the EV credit seems to be added to the carry-forward for 2019 rather than reducing the tax payable to the federal government, any way out of this? I can give more details as needed...

[Vanessa]

We need to start with the basics.  You are saying you have a tax due.  What is on line 11 of your 1040?  Are you self-employed?

[psarkar24]

Thank you for your response, your help is much appreciated. Let's go step by step.
Line 11 in 1040:  212K - I'm filing as an individual
Here's the relevant detail on form 8801 part II with and without the EV tax credit
Without the EV tax credit, line 22 was 204K but with the EV tax credit, it got reduced to 197K.
Similarly, lines 24 and 25 were 28K without the EV tax credit but 20K with the EV tax credit.
So line 26 (aka "Credit carry-forward to 2019") was 231K without the EV tax credit and 238K with the EV tax credit. Please let me know if you need anything else.

[psarkar24]

Thank you for your response, your help is much appreciated. Let's go step by step.
Line 11 in 1040:  212K - I'm filing as an individual
Here's the relevant detail on form 8801 part II with and without the EV tax credit
Without the EV tax credit, line 22 was 204K but with the EV tax credit, it got reduced to 197K.
Similarly, lines 24 and 25 were 28K without the EV tax credit but 20K with the EV tax credit.
So line 26 (aka "Credit carry-forward to 2019") was 231K without the EV tax credit and 238K with the EV tax credit. Please let me know if you need anything else.

[stevec1]

I have the same issue. It was working before the latest update. However, the credit "disappears" after the latest update. And I don't know how to fix it. I think it's a bug they introduce.

[Vanessa]

The EV Credit is a nonrefundable credit.  This means if you are eligible for a $7,500 credit but only have a tax on line 11 of $500, you will only get a $500.  If you are self-employed or have a healthcare penalty or have certain other taxes that you owe a nonrefundable credit will not change the amount you owe.  

Even refundable credits will not reduce these taxes, they will simply offset them.