EV Credit, TurboTax, & the IRS

[glhs272]

It appears I am having the same trouble. My Tax credit was rejected.
http://www.teslamotorsclub.com/showthread.php/28294-7-500-Tax-Credit-Rejected

 

[cinergi]

I work for Intuit (albeit nowhere close to the Tax division) -- I'll see if I can get this in front of the right people ...

 

[Gizmotoy]

I could certainly be wrong, but I thought the typical process here is that you would receive the refund, then a letter stating that the IRS is disputing your $7,500 credit, which effectively starts the audit process. You then have the option to accept it, or to appeal using the standard methods.

That may be the process, I was trying to remember how it went down. This was over on the other forums so searching for the original thread was fruitless.

I suppose fraud is possible. However I didn't include my last five VIN numbers in my signature until well after filing my taxes. I filed on Feb. 8th, almost as soon as I could with TurboTax. My signature was created just recently. I guess anyone on the street passing by the car could snap a picture of the VIN and file that as soon as possible.

It happened before, so I figured I'd mention it. The speculation was that the last five of the VIN in the sig plus the user's post history (for option selections) would have been enough to recreate the VIN without ever having seen the car. Or, as you say, you could walk up to any Model S with temporary tags and write down the VIN from the windshield.

In any case, you seem to have tracked it back to TurboTax, so I'm happy you've at least found the source.

 

[GasDoc]

From the looks of the other thread, someone got the EV credit disallowed because they didn't include Form 6251 (Alternative Minimum Tax). This individual was not one that AMT applied to.

 

[Btrflyl8e]

I filed using TurboTax, got my refund including the full EV credit on 2/20. I think I filed around the 8th. I also took a portion as an Amazon ecard for the extra 10%, all worked out great for me. Now I feel lucky...

 

[glhs272]

I am only guessing that, like the guy on the other thread that my tax credit was rejected due to the fact that TurboTax didn't include the 6251 form. But I have been looking around and can't find anywhere that I need to file a Form 6251 due to using the 8936 Form.

I have been on the phone with TurboTax and they seem to be unable to understand this as well.

Edit:

Wait, yep after looking at the Form 6251 instructions, it does say you have to file this if you are claiming the electric vehicle tax credit.

 

[glhs272]

I work for Intuit (albeit nowhere close to the Tax division) -- I'll see if I can get this in front of the right people ...

cinergi, I am not sure if you are responding to me, as it appears these two threads got merged, but yes if you can get this in front of the right people that would be great. I am guessing every model S owner using turbotax is going to run into this. For the sake of your company, I am sure they will want to get to the bottom of this.

It is definitely a flaw with the software. I even tried to amend my return and get it to create a 6251, but it won't do it. It says you don't need to based on your income and the software won't produce the form. This is clearly a software bug and it is going to trap a lot of customers like me.

 

[Gizmotoy]

cinergi, I am not sure if you are responding to me, as it appears these two threads got merged, but yes if you can get this in front of the right people that would be great. I am guessing every model S owner using turbotax is going to run into this.

Well, not every one. Anyone actually subject to the AMT would have that form. It looks like it's those who file for the credit and aren't subject to AMT that TurboTax is messing up.

 

[glhs272]

Well, not every one. Anyone actually subject to the AMT would have that form. It looks like it's those who file for the credit and aren't subject to AMT that TurboTax is messing up.

Gizmotoy you are correct. If I or anyone else using TurboTax was subject to the AMT then yes I would likely not have had this issue. I would guess that there probably are a number of Model S owners subject to the AMT. I guess I fall in the middle somewhere. Maybe a number of Nissan leaf owners would be in my situation.

 

[JohnQ]

And here I was bitching about owing AMT ... looks like it saved me a bunch of headaches. I switched to TurboTax since H&R Block doesn't have the EV credit forms in its software.

 

[Nathan Smith]

cinergi, I am not sure if you are responding to me, as it appears these two threads got merged, but yes if you can get this in front of the right people that would be great. I am guessing every model S owner using turbotax is going to run into this. For the sake of your company, I am sure they will want to get to the bottom of this.

It is definitely a flaw with the software. I even tried to amend my return and get it to create a 6251, but it won't do it. It says you don't need to based on your income and the software won't produce the form. This is clearly a software bug and it is going to trap a lot of customers like me.

There is a workaround -- I will be using it as soon as I get the offical letter from the IRS, since you can only file the 1040x by mail you have to print out all the forms anyways. So select the "forms" icon on the upper right hand side of the TurboTax window. It brings a new window with a list of forms in your return listed to the right. On the top of that list is an icon for "open form" select it and a new window opens - type in 6251 select the appropriate form, print & file (it's should already be filed out).

 

[Beavis]

There is a workaround -- I will be using it as soon as I get the offical letter from the IRS, since you can only file the 1040x by mail you have to print out all the forms anyways. So select the "forms" icon on the upper right hand side of the TurboTax window. It brings a new window with a list of forms in your return listed to the right. On the top of that list is an icon for "open form" select it and a new window opens - type in 6251 select the appropriate form, print & file (it's should already be filed out).

This is what I would do (says the tax partner at an accounting firm). Print the form and paper file.

 

[hyperpretension]

I filed using TurboTax on 2/17. I do not pay AMT and got my full refund on 2/26 including the $7,500 tax credit.

 

[Nathan Smith]

hyperpretension,

if you could... post what turbotax submitted for your tax return. Just follow what I posted in #31 (up until the "open form" part) and make a screenshoot. It would be interesting to compare and contrast.

 

[tezco]

I filed for the credits last year (and had no problems); however, my accountant at Eide Bailly said the word on the street was to expect difficulty in getting the credit. Apparently nothing has changed this year.

 

[gameon]

TurboTax and other software packages are good for simple tax return.

Try to file through EA who knows latest rules (they have to) and take responsibility for making mistake. If you are expecting 7500 refund spend $200 or $300 for EA (enrolled agent)

 

[jive_devil]

Yikes, I'm in the same boat (and already filed). I'll call Intuit tomorrow to try to get to the bottom of this.

 

[Denarius]

I did not qualify for AMT and I received my full return including EV credit.

 

[Kraken]

F... Maybe that's why it hasn't shown up yet... I could really use this rebate sooner. Turbotax will definitely be hearing from me if this is messed up.

exact same situation, filed 22 feb... A little less time than the rest of you.

thanks for the heads up. Hopefully if mine does see the same fate, the fix won't take long.

 

[Plug Me In]

I filed for the $2500 credit last year for a Plug In Prius. I used Turbo Tax and was subject to AMT. My refund was decreased 2500 and I received a notification from the IRS. I forget the details now but went through some process, I thing resubmitting the credit form including a copy of the bill of sale. About 3 months later I got the $2500 + interest. This was during the sequester fiasco, so I think that delayed the payment some.

A lot of people experienced this last year and Prius forum speculation was that there were a lot of fraudulent claims for regular Priuses, so extra scrutiny was applied by the IRS. I'm using an accountant for taxes this year so hopefully I'll get smoother sailing with the $7500 credit.