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New Member
posted Mar 24, 2025 7:55:10 AM

Unqualified Tesla REBATE forms required?

I received a rebate for the purchase of my Tesla in 2024 and did not realize I was not qualified due to a 401K large distribution taken.  How am I supposed to file to report this to the IRS?

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1 Replies
Expert Alumni
Mar 24, 2025 8:00:26 AM

You will walk through the questions regarding the EV credit.  You will tell TurboTax that you transferred the credit to the dealer.  As you walk through all the questions, you will then be told you do not qualify (if you do not for last year or this year).  The amount of the credit you received in advance will be added back to your tax return as an amount due.  

You will find the EV credit by selecting

  1. Personal
  2. Deductions and Credits
  3. Energy Efficient Vehicles under Cars and Other Things you own

    Note, if your income last year allowed you to qualify, then you would be able to use last years income instead of this years income and may not have to pay back the credit.