Anyone else apply for the Federal tax credit for EV's this year? I was doing my taxes through turbo tax and input my vehicle information and purchase date in turbo tax. Turbo Tax seems to think that I am eligible for $7,500 even though I purchased the vehicle 0n 3/21/2019. I was under the impression that the max tax rebate for 2019 wast $3750 if the car was bought before July 1, 2019. Is anyone aware of any changes to the tax laws or is Turbo tax incorrect? I also called Turbo tax to verify and they their guidance said it was correct (i am still weary that this is correct). I haven't filed my taxes yet because I want to make sure this is correct before I risk getting audited or have to pay back taxes, Anybody have this same issue pop up?
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Model 3 tax credit Question,( I think Turbo Tax form is wrong)
- Thread starter PeteBird
- Start date
$3,750 if you took delivery between January 1 to June 30, 2019
Tax Credit Question
You should send this link to TurboTax I guess?
What You Need to Know about the Federal EV Tax Credit Phase Out
Tax Credit Question
You should send this link to TurboTax I guess?
What You Need to Know about the Federal EV Tax Credit Phase Out
Same here. As much as I wish somehow TurboTax were right, we know of course they're wrong. If we let it enter $7,500 for us, I would think it's a sure red flag for the IRS since we're providing VIN #s, etc.
There's another issue too: Apparently the corresponding form isn't getting filled in correctly, which is affecting other forms as well, according to this post on reddit: TurboTax form 8936 beware! Possible math error : teslamotors
Line 4A of form 8936 should be $7,500, but if you've manually overridden the questionnaire to be $3,750, that's the amount it enters in the form. Line 4B should be 50%, and 4C would be $3,750.
There's another issue too: Apparently the corresponding form isn't getting filled in correctly, which is affecting other forms as well, according to this post on reddit: TurboTax form 8936 beware! Possible math error : teslamotors
Line 4A of form 8936 should be $7,500, but if you've manually overridden the questionnaire to be $3,750, that's the amount it enters in the form. Line 4B should be 50%, and 4C would be $3,750.
X-Pilot, did you look at form 8936 in Forms View? My experience is that line 4A will say $3,750 but should be $7,500. Line 4B should be 50%, and 4C should be $3,750.
Two months ago I had to manually enter $3,750 because TT defaulted to $7,500. Then last month TT went to $1,875 and I couldn't override it, until the update yesterday... and it went back $3,750. Strange. I zeroed it out to see what it would default to, and it went to $7,500.
Two months ago I had to manually enter $3,750 because TT defaulted to $7,500. Then last month TT went to $1,875 and I couldn't override it, until the update yesterday... and it went back $3,750. Strange. I zeroed it out to see what it would default to, and it went to $7,500.
WilliamG
Hinge Fanatic
TurboTax is borked when it comes to this credit. Apparently they're aware of it.
TurboTax form 8936 beware! Possible math error : teslamotors
TurboTax form 8936 beware! Possible math error : teslamotors
I'm just filling in the form today for the Model 3 I bought in May 2019.
TurboTax reports:
Your Credit Results
Good news! We've calculated a credit of $1,875 for your plug-in electric drive motor vehicle.
Adjust the credit amount if this does not match the manufacturer's certification.
Credit Amount 3,750
So in the last line, it pre-filled the input field with the correct amount (since I bought the car between Jan 1 and Jun 30), but shows a different amount in the preceding statement.
TurboTax reports:
Your Credit Results
Good news! We've calculated a credit of $1,875 for your plug-in electric drive motor vehicle.
Adjust the credit amount if this does not match the manufacturer's certification.
Credit Amount 3,750
So in the last line, it pre-filled the input field with the correct amount (since I bought the car between Jan 1 and Jun 30), but shows a different amount in the preceding statement.
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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).
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).
so the "credit" and "credit amount" refer to different things? Bizarre. But in that case both of TT's amounts are wrong.
You put the wrong number for ‘credit’. Put $7500. If you bought in May, then the phase out percentage should put you correctly at $3750.
I think the confusion is how TT tells you to fill out the form. It’s not clear on their data entry page how it’s supposed to work based on Form 8936.
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The TT printout I quoted was before I had entered anything. They seem to have applied the 50% allowable fraction twice.
They should have an entry for the credit for the vehicle (which would be 7500) and a percent allowable based on the manufacturer's status and the purchase date (which for mine would be 50%), to show how they came up with the final amount.
TT's implementation is counter-productive. I'm paying them to simplify the filing process.
They should have an entry for the credit for the vehicle (which would be 7500) and a percent allowable based on the manufacturer's status and the purchase date (which for mine would be 50%), to show how they came up with the final amount.
TT's implementation is counter-productive. I'm paying them to simplify the filing process.
^Certainly it’s not a perfect implementation by TT, but I cut them some slack. The IRS was late getting the form out and then TT was left scrambling to get their program updated ASAP so that people could file and use their early filer discount.
And at least they also have Form 8911 for your charger station discount, which H&R Block online doesn’t.
And at least they also have Form 8911 for your charger station discount, which H&R Block online doesn’t.
Maybe the IRS software will have the same error and issue you a check! (Ha!)
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?
I bought in March 2019 & filed my taxes in March but I entered $3750 manually as my year appropriate credit amount.
Now in thinking I did this incorrectly.
True?
I bought in March 2019 & filed my taxes in March but I entered $3750 manually as my year appropriate credit amount.
Now in thinking I did this incorrectly.
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