Tax Credit Question

[MJRoses23]

So I'm filling out my taxes on H&R Block. I'm filing as Married/Jointly and after the standard deduction, it says that my tax liability is $7871. My only other credit is for our daughter and that is $2000.

When I enter my info for the tax credit (2019 Tesla, should be $1875) it says that I am only eligible for $469 of the credit.

Can anyone help me understand what happened?

Sorry if in the wrong section.

 

[St☰v☰]

I believe you need to put the whole amount in, $7,500, and the system will compute your actual credit amount, $1,875.

 

[MJRoses23]

And there it is! Thank you so much for the help!

 

[Skunis]

Check out this article Top 15 FAQs on the Income Tax Credit for Plug-in Vehicles

I do not think it is limited by income but you didn't mention if you used the car for business use or not. That could be a factor.

I am not an accountant so cannot give advice on your taxes.

I would call H&R Block or the IRS and ask.

 

[DMLou]

Wait, I thought the tax credit for Teslas expired? Or was this car bought early enough last year that you were still able to get it?

 

[house9]

Wait, I thought the tax credit for Teslas expired?

Tax credit is still valid for applying to your 2019 taxes, if the car was delivered before midnight on 12/31/2019.

From: What You Need to Know about the Federal EV Tax Credit Phase Out
$7,500 On or before December 31, 2018
$3,750 January 1 to June 30, 2019
$1,875 July 1 to December 31, 2019

 

[Stach]

I believe you need to put the whole amount in, $7,500, and the system will compute your actual credit amount, $1,875.

I'm using H&R Block software for the first time this year and was stumped / frustrated by the exact same issue for a bit. I don't think they worded the questioning on that screen very well, which will lead to the issue, but am glad that it's figured out as I was about to open a bug report with them.

 

[DopeGhoti]

You have to tell the software that the credit is $7500 regardless of when you purchased. It will give you the correct portion of it based on your supplementary information. If you plug in the 1/4 rebate, $1,875, because that's what you are due, it will helpfully give you a quarter of that.

 

[Kognos]

What is stated in this thread is correct and confirmed:
- make sure you put in the full 7500 and the purchase date, the HRBlock system will do the rest of the calculations for you.
- yes, the tax break has expired now, but we're filing taxes for last year where it was valid at 50%/25%

 

[Angeredcat]

So I'm filling out my taxes on H&R Block. I'm filing as Married/Jointly and after the standard deduction, it says that my tax liability is $7871. My only other credit is for our daughter and that is $2000.

When I enter my info for the tax credit (2019 Tesla, should be $1875) it says that I am only eligible for $469 of the credit.

Can anyone help me understand what happened?

Sorry if in the wrong section.

Came to ask the same thing...

 

[Angeredcat]

I believe you need to put the whole amount in, $7,500, and the system will compute your actual credit amount, $1,875.

Thank you brother... I was stumped on this too!!!

 

[BriSan]

Hi all!

I just went through this process as well. I purchsed my Model 3 in March of 2019, which should be a return of $3750.

I tried on TurboTax first, but it gave me errors and then dropped my refund to $1875. I talked with several TurboTax customer care folks, they had no idea that it was an error, let alone how to fix it.

I searched this issue and came to this forum which was a great help! I completed my return on H&R Block online with the proper credit (putting the full credit in first as $7500) and letting the software calculate the remaining credit. The IRS accepted both my Federal and State taxes right after.

Thank you all again

 

[jkdman123]

TurboTax works the same way.

Incidentally, only TurboTax allows you to electronically file form 8911 to get credit for installing your home recharging station. H&R Block doesn’t.