Clean Vehicle Credit, IRS form 8936 & form 8936, Schedule A.

[ae6ic]

I have received IRS Notice CP99D. It states that my tax return must include form 8936 & 8936 Schedule A. But the  Intuit Turbotax Premier version has no provision for this. How do I resolve this issue? 

Fred

[LindaS5247]

Yes, Notice CP99D serves as your reminder that, when you file your federal tax return for the year the clean vehicle was placed in service, you must include the following completed forms to report the transfer election: Form 8936, Clean Vehicle Credits  Form 8936, Schedule A, Clean Vehicle Credit Amount PDF 

The Notice also provides that if you DID NOT elect a transfer of the clean vehicle credit, email or call us immediately at the email address or telephone number shown on your notice.

If you completed the interview section in TurboTax regarding energy-efficient vehicles, the information will be reported on Form 8936 and Form 8936  Schedule A, which is part of your tax return.

Form 8936 and Schedule A (Form 8936) should be included with the tax return you completed using TurboTax.

To get to the screens in TurboTax that deal with energy-efficient vehicles, you can:

1. Click on the Search icon at the top right of your TurboTax screen
2. Type "energy efficient vehicle" in the search box
3. Click on the link "Jump to energy efficient vehicle"

You will answer the TurboTax questions regarding your energy-efficient vehicle purchase. If you transferred the credit to the dealer in exchange for a lower price on the vehicle, you will not get the tax credit on your tax return.

Your screens will look something like this:

Click here for "Understanding the New Clean Vehicle Credit"

Click here for "Filing Tax Form 8936: Qualified Plug-in Electric Drive Motor Vehicle Credit"

Click here for "Form 8936".

Click here for "Schedule A Form 8396"

If this does not resolve your issue please return to TurboTax Community and we will be happy to help you.

[SB_1]

I elected to transfer the credit ($3,750) to the dealer at the time of the purchase.  I completed Form 8936 and the Schedule A associated with Form 8936.

My question is where/how is the fact that I transferred the credit at the time of the vehicle purchase reflected on the Tax Filing - i.e. what line item(s) and on what schedules or forms show that I transferred the credit?

I had no errors from Turbo Tax when filing and answered the question(s) about transferring the credit to the dealer. My return was accepted over 4 weeks ago. I have never waited that long for a refund after acceptance of the form.

In reviewing my 1040 and associated schedules (like Schedule 3 and the Form 8936 and its schedule A), I don't see where the fact that I transferred the credit to the dealer is directly reflected on the 1040 or the Schedule 3 or on the 8936 and its schedule A. 

I have not received a letter from the IRS, but the text on the "where's my refund" section of the IRS website says my filing is being reviewed.

Any insight as to how the transfer of the credit is reflected on the 1040? I think the refund actually shown on my 1040 is $3,750 too high, but don't know for sure.

[Vanessa A]

If you look at your form Schedule 3 line 6f, this is where you would see a credit that you actually received as part of your refund.  If Schedule 3 line 6f does not have a number, then you did not get the credit.

Also, when you walk through the questions for the EV credit and say you transferred the credit, at the end of the questions, it should tell you your credit is $0. 

If you did get the credit, watch for a letter in the mail from the IRS.  If you received it and should not have, they will make an adjustment to your credits and let you know. You will not be penalized, the refund amount will just be corrected. 

[SB_1]

I am still confused.

Let me respond to your paragraphs below one at a time:

1.  No number is shown for Schedule 3, line 6f on my filing.  Note also that Form 8936, I do qualify for the credit based on income as line 5 is marked as a "2", for married filing jointly.  Income for both 2023 and 2024 was less than applicable max for my filing status.  There are no other line items for Form 8936 answered.  All line items for Parts II, III, IV and V are blank.  Is that correct?  For Schedule A (Form 8936), the Vehicle Detail was filled in at the top, Part I was filled out for 1abc - 3, 4a was yes with $3,750, 5 was yes, which says go to Part II leaving the remainder of Part I for 5b and 6-7 were blank.  Part II 8a was no, 8b was yes, 8c was no and the rest of Part II 8d through 11 was blank.  Part III line 12 was blank.  Part IV was blank except line 16 was $4,000.  Part V was blank for all line items.

2. The interview did show my credit as $0.  What does that mean?  Is it showing $0 because I transferred the credit to the dealer at time of sale?  I was clearly eligible for the credit based on the income limits that I was below, so it can't mean I wasn't eligible at all?

3. So based on my answers above, did I "receive the credit" (your terms in 3rd paragraph)?  My thinking on the election I made to transfer the credit to the dealer at the time of purchase means that had the refund amount on my 2024 Federal Filing had been $5,000 (ignoring the fact that I received an "advance" on that refund of $3,750 during 2024), that when reflecting the transfer of the credit on my actual filing that the actual refund amount shown on the 2024 Form 2024, line 35a, would be $1,250 ($5,000 less the $3,750 "advance"), not $5,000.  That didn't happen on my filing in the Turbo Tax desk top version.  No where on any Form or Schedule does it reflect the "advance" of $3,750.  Note also that I received from the IRS shortly after the purchase of the vehicle IRS Notice CP99A and then in both January and February 2025, I received IRS Notice CP99D.  There isn't much difference between the A and the D versions of the IRS Notices.  The A  version said you recently purchased a Clean Vehicle.  Is it possible that the Turbo Tax desk top version didn't transmit the Form 8936 and Schedule A (Form 8936) to the IRS when I filed in mid February 2025? Or the Form and Schedule A still weren't programmed correctly at the time of my filing, even though when I filed, the review showed no errors?

Thanks.

[MarilynG1]

Your return is correct, if it shows you received no credit.  You are just reporting, since you transferred the credit to the dealer (you received the credit initially, just gave it to the dealer).

The CP99 is just to remind you to report this. Here's more info on the CP99 Notice.

@SB_1 

[SB_1]

Finally "figured" it out. Was overthinking the "advance" (as I termed it) for the credit that I transferred to the dealer.

My tax return does reflect the transfer correctly by showing that I have a $0 credit, making the calculations on the refund correct.