Schedule A form 8936 Line 16 not blank.

Forum|Forum|2 months ago
March 16, 2026
2 replies
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Hello,

I bought a new EV on before Oct 1 2025 and transferred the credit to the dealership at the time of sale for $7,500. I qualify for full credit base on my MAGI and HoH status. I don't understand why line 16 Maximum vehicle credit amount shows $4,000 there. There is nothing filled out on Part IV except line 16 and it should be blank.

4a. $7,500

5. Yes

8a. No, 8b. Yes, 8c. No

MindyB

Level 13

The $4,000 maximum is the amount for used cars. Since you have box 5 checked yes, I would not have expected to see $4,000. I tried to replicate this and was unable to. I would suggest deleting the form and re-entering it, to ensure that if something is "stuck" in the background it is reset.

Go to Tax Tools on the left of your screen, then Tools, then select Delete a form. Choose the trash can next to 8936. Then, re-enter the info making sure "new" is checked again.

Linda PAuthor

Level 2

I did what you suggested and still didn't dix the issue. I tried on other returns and still the same problem. That $4000 seems like it's refilled on the form. Will it cause IRS issue if it stays there like this since I can't remove it?

Linda PAuthor

Level 2

If you transferred your $7,500 EV credit to the dealer at the point of sale, you are not eligible to claim the credit again on your tax return, meaning it will not reduce your tax liability or increase your refund. You must still file Form 8936 and Schedule A to reconcile the transfer. You should show $0 on Line 13 of Form 8936.

You may qualify for the Car Loan Interest Deduction, however, so you may want to step through the interview in the Deduction section.

@Linda P

I understand that. I am not looking to claim the credit. Please read MindyB response. She understood my question. $4,000 for used car credit should not be there at all as this is a NEW car purchase. I tried online turbo tax version, started the return from the scratch, used different computer, that $4,000 on line 16 doesn't come off at all. It appears to be prefilled on the form. I need to remove that $4,000 which it not possible to remove at all. I tried a different tax software and did not have that issue. So it's a BUG in the form.

zhangxinya2004

Level 2

Hi Linda,

I ran into the exact same issue you mentioned regarding TurboTax/Tesla EV credit and was wondering how you were able to resolve it. I also purchased TurboTax through Costco.

I’d really appreciate any guidance you can share. Thanks so much for your time, and I look forward to hearing from you.

Thank you!

AmyC

Level 15

TurboTax puts a cap on a line before checking if you even need that section. If your final refund matches your expectations and doesn't include an extra $4,000 credit you didn't ask for, you are safe to file.

Check here:

Schedule A, Line 17: If Line 17 is blank or $0, the $4,000 on Line 16 is a dormant number that isn't being added to your tax liability or refund.
Verify Form 8936, Part I: Ensure Line 4a correctly shows your $7,500 transfer. This is the most critical line for the IRS to see that the credit was handled at the dealership.
Review your "Tax Summary": Look at your total tax and credits. If you don't see a $4,000 credit being applied to your bottom line, the software is ignoring that Line 16 value just as it should.

@zhangxinya2004

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