Model 3 tax credit Question,( I think Turbo Tax form is wrong)

[Knightshade]

Sorry to bring this up again, but was on 1 of the Model 3 Facebook group page & a couple of people suggested that the right way to enter the tax credit in Turbo Tax is to put in the $7500 original tax credit- pre-phaseout - TT will then adjust it correctly to the right date assigned credit amount matching your VIN & date purchased

True?

Generally, yes.

The actual credit is $7500, then it'll adjust the amount you're actually eligible for based on the VIN and in service date.

 

[VQTRVA]

Generally, yes.

The actual credit is $7500, then it'll adjust the amount you're actually eligible for based on the VIN and in service date.

Did I misinterpreted this entire thread from Feb & March?

The first several times I read it, it appears everyone said to enter your exact amount of the expected credit into TURBO TAX for the year appropriate purchase. And not to enter 7500 if you bought post 2018.

Just trying to see if my reading comp was that bad?!

 

[jrweiss98020]

What shows up on the final form?

 

[Knightshade]

Did I misinterpreted this entire thread from Feb & March?

The first several times I read it, it appears everyone said to enter your exact amount of the expected credit into TURBO TAX for the year appropriate purchase. And not to enter 7500 if you bought post 2018.

Just trying to see if my reading comp was that bad?!

Post from March 1 in this thread seems to confirm what I said-

You put in the $7500 max and based on the purchase date, TT corrects it.

It’s confusing, but I just checked my printed return and it figured correctly.

Form 8936 says put $7500 on line 4a. Line 4b is the phase out percentage. Line 4c is the corrected amount based on applying the phase out percentage to line 4a ($7500).

 

[jkdman123]

Did I misinterpreted this entire thread from Feb & March?

The first several times I read it, it appears everyone said to enter your exact amount of the expected credit into TURBO TAX for the year appropriate purchase. And not to enter 7500 if you bought post 2018.

Just trying to see if my reading comp was that bad?!

I think there was a lot of confusion because TT’s instructions were confusing. They didn’t really tell you what to do and they defaulted the max amount in a box that’s editable.

I now believe the box is editable because the max tax credit on an all electric vehicle can vary from $2500 to $7500, or at least that used to be the case.

The right way for TT to have done their data entry page would have been for you to enter your make, model, and VIN, then they would explicitly tell you this is the max credit you can get on this particular vehicle, and the credit will be adjusted for purchase date and phase out percentage. But since the IRS was late with their own form, TT was left scrambling at the last minute and their software development suffered.

 

[vickh]

The right way for TT to have done their data entry page would have been for you to enter your make, model, and VIN, then they would explicitly tell you this is the max credit you can get on this particular vehicle, and the credit will be adjusted for purchase date and phase out percentage. But since the IRS was late with their own form, TT was left scrambling at the last minute and their software development suffered.

didn't HR Block get it right?

 

[jrweiss98020]

Yes. I did mine on H&R Block, and got my refund quickly.

 

[jkdman123]

didn't HR Block get it right?

The problem with Block is that they didn’t have an online form 8911 for credit for installing ‘a refueling station’ for an alternative fuel vehicle.

 

[vickh]

The problem with Block is that they didn’t have an online form 8911 for credit for installing ‘a refueling station’ for an alternative fuel vehicle.

but they have the car credit right? Put in as 7500 and they'll figure it out?

Maybe I should use TT and just blame them

 

[jkdman123]

but they have the car credit right? Put in as 7500 and they'll figure it out?

Maybe I should use TT and just blame them

Yes, both services have the car credit and it works. But Block doesn’t have the refueling station credit online. You would have to print it and send it in.