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2013 EV Tax Credit Form Out

justaddsun

Member
Dec 22, 2012
403
0
DC
Sorry this is a repost, but just a question: My CPA wrote this to me, and I just want to cross-check with anyone who has gone through this before I pursue:

"In reading the instructions for the Form 8936, which is the form the Tesla credit goes on, it states that Tesla should have provided you an IRS letter acknowledging the certification of the vehicle as eligible for the credit. I need a copy of that letter as well as their paperwork to you that tells you the amount of credit eligible for their vehicle. I know it’s $7,500, but they are responsible for tracking it as it phases out as they sell a certain number of vehicles and only they know that."

TIA!
 

liuping

Active Member
Jul 23, 2013
2,242
896
San Diego
I did not get a letter like that from GM for my Volt or from Tesla for the Model S.

The form askes for the vin, so they are tracking it that way.
 

Musterion

18h 03m 37s −24° 23′ 12″
Jan 10, 2013
579
168
M8
Sorry this is a repost, but just a question: My CPA wrote this to me, and I just want to cross-check with anyone who has gone through this before I pursue:

"In reading the instructions for the Form 8936, which is the form the Tesla credit goes on, it states that Tesla should have provided you an IRS letter acknowledging the certification of the vehicle as eligible for the credit. I need a copy of that letter as well as their paperwork to you that tells you the amount of credit eligible for their vehicle. I know it’s $7,500, but they are responsible for tracking it as it phases out as they sell a certain number of vehicles and only they know that."

TIA!

Your "CPA" sounds a bit clueless. The form instructions do mention a certification letter but this is a letter sent by the manufacturer directly to IRS (you can get a copy from manufacturer, but it is not necessary for the filing). And the IRS lists the results of the certification on their web site. Here is the direct link for all Tesla vehicles:
Tesla IRS credit amounts link

And finally regarding the phaseout -- you should tell this CPA with whom you are entrusting all your money that it only begins after 200,000 electric vehicles produced (by Manufacturer, and only counting those sold for use in US)...

[Finally a note to the mods: there is a lot of recent cross-posting going on in several tax credit links and it would be great to merge them all].
 

Apoclyps

Member
Feb 28, 2013
525
6
Taipei, Taiwan
So, my CPA has told me that I dont need to owe 7500 to be able to take advantage of the full credit (eg, all 7500). Is this true? I thought I had to owe >7500 to be able to use all 7500 of the credit.

Note: i am an idiot when it comes to finances
 

iffatall

Member
Nov 15, 2013
698
241
SF Bay Area, CA
I am doing my taxes by myself, and have a couple of questions, if anyone knowledgeable here can please answer:


  1. Can I file Form 1040NR-EZ if I want to attach Form 8936 for the EV credit? Or do I have to file Form 1040NR?
  2. Does the final credit amount in Line 23 of Form 8936 just stay there or does it have to be put somewhere in my 1040NR-EZ? Are they going to issue me two credits - one for my tax refund from 1040NR-EZ and one for the EV credit from 8936?

Thanks a lot, in advance, for any advice.
 

Tommy

Member
Mar 3, 2010
882
3
The great OC
So, my CPA has told me that I dont need to owe 7500 to be able to take advantage of the full credit (eg, all 7500). Is this true? I thought I had to owe >7500 to be able to use all 7500 of the credit.

Note: i am an idiot when it comes to finances
You have to have a tax liability of $7,500 to get the full $7,500 credit. See line 46 of your 2013 Form 1040 to see what your tax liability is. If it's at least $7,500 than you get the full credit, otherwise it's a dollar for dollar of tax liability to tax credit up to the maximum of $7,500.

Many people have more taxes withheld every payday and end up with a refund (or still owe a small amount) which is where I think the confusion is as they are not sure of their actual tax liability. The amount of money withheld is on line 72 of Form 1040. The difference from line 72 and line 46 whether + or- is the amount you still owe or the refund you will get because you overpaid your tax liability. So your CPA is correct in the sense that if not enough money was withheld during the year you still owe the IRS the difference from what you prepaid and your actual tax liability.

Bottom line: look at line 46. If it's at least $7,500 your golden and get the full $7,500 credit.

Edit Note: I mistakenly stated line 61 when line 46 is the line to look at (corrected in test of post above). Sorry for the confusion, trying to be helpful and posted in haste. :redface:
 
Last edited:

GDH

Banned
Dec 5, 2012
993
-1
Portland, OR
So, my CPA has told me that I dont need to owe 7500 to be able to take advantage of the full credit (eg, all 7500). Is this true? I thought I had to owe >7500 to be able to use all 7500 of the credit.

Note: i am an idiot when it comes to finances

I owed around $4500 in taxes, I paid around $5000....so I am only getting a $4500 tax credit.....plus what I over paid. You will get a credit for whatever you owe. I filed with TaxAct two weeks ago and I am getting my refund tomorrow.........the IRS processed mine super fast.
 

Tommy

Member
Mar 3, 2010
882
3
The great OC
I owed around $4500 in taxes, I paid around $5000....so I am only getting a $4500 tax credit.....plus what I over paid. You will get a credit for whatever you owe. I filed with TaxAct two weeks ago and I am getting my refund tomorrow.........the IRS processed mine super fast.

As I read your post, you had a tax liability of aprox. $9,500 ($4,500 owed + $5,000 already paid). Your line 61 should be about $9,500 correct? If so, of the $7,500 credit due you, $4,500 the IRS will keep to pay for the $4,500 you still owe them and a refund of $3,000 is arriving tomorrow.

At least I hope that's what is happening. :smile:


Edit notes: My bad GDH. Line 46 is the line to be looking at not 61. I changed my original post so I don't lead posters down the wrong path.
 
Last edited:

GDH

Banned
Dec 5, 2012
993
-1
Portland, OR
My refund hit my account this am. Woot woot!

- - - Updated - - -

What kind of reminder email?
When I open TT, it informs me of pending software updates, if there are any, but I don't get any emails from them.

Here's the email I got:

intuit-header.gif
Tax Forms Ready
Dear TurboTax Customer,
We just wanted to let you know your tax forms are ready. Below we have listed all the forms you asked us to e-mail you about -- forms you may have worked on since then won't be listed. You can return to TurboTax Online to finish your taxes anytime.
These forms are now ready.

  • Form 8936
 

Tedkidd

Member
I owed around $4500 in taxes, I paid around $5000....so I am only getting a $4500 tax credit.....plus what I over paid. You will get a credit for whatever you owe. I filed with TaxAct two weeks ago and I am getting my refund tomorrow.........the IRS processed mine super fast.

Not a TRUE credit. Like many of these dishonest government 'credits' if your income is not just right you get screwed. In this case it has unfair bias towards high income earners.

GDH bought a car he thought would net cost $7500 less than he paid. In the end his 'rebate' was only $4500. Who doesn't see that as being screwed out of $3000 by IRS 'fine print.'
 

GDH

Banned
Dec 5, 2012
993
-1
Portland, OR
Not a TRUE credit. Like many of these dishonest government 'credits' if your income is not just right you get screwed. In this case it has unfair bias towards high income earners.

GDH bought a car he thought would net cost $7500 less than he paid. In the end his 'rebate' was only $4500. Who doesn't see that as being screwed out of $3000 by IRS 'fine print.'

Well lets be clear, I knew that I would not qualify for the $7500 credit.
 

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