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January 29, 2025
Question

I'm totally confused what to do with form 8936 - Clean vehicle credits

  • January 29, 2025
  • 6 replies
  • 0 views

Please help me, i am trying to get answers online but everyone are telling me different things.

So i purchased EV vehicle in 2024.

Answered YES to turbo tax question about transfer to the dealer and entered whole amount i received ($7500).

But few days ago i received a letter from IRS stating "you are required to file Form 8936 and 8936 Schedule A...".

 

So,

1. Do i need to file that form by myself and send it to IRS separately from my Turbo tax return ?

2. If turbo tax already asked me that question does it mean i don`t need to file it separately and turbo tax will take care of it?

 

thank you

 

    6 replies

    KrisD15
    January 29, 2025

    No, you don't file it yourself, the Form is included in your tax return.

    Yes, if you completed the interview, the issue would be reported on Form 8936 which is part of your tax return.

     

    Form 8936 and Schedule A (Form 8936) should be included with the tax return you completed using TurboTax.

    Please verify that those forms are included. 

     

    HERE is a link with the steps to view the forms when using TurboTax Online. 

     

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    dare88Author
    January 29, 2025

    Thank you

     

    So when i go to tools i see  Form 8936 now.

    But i don`t see Schedule A anywhere.

    Does is say Schedule A or something else?

     

    Thank you

     

    February 1, 2025

    Yup, I have the same question.  Where is 8936 Schedule A?  This is very confusing and frustrating!

    February 2, 2025

    Actually, TurboTax automatically generates both forms!  If you click form view, you’ll see 8936 and A

    dare88Author
    February 2, 2025

    they do.

    But there is glitch in their system so your tax will never pass the pending status and IRS will never receive it.

    Nobody using TT with EV clean vehicle credit got accepted yet by IRS

    February 2, 2025

    Thanks, but how do you know this?

    February 4, 2025

    Are we still supposed to fill out the form if we cancel the delivery ???? i called earlier and they told me it doesn't apply since I didn't get the car and wanted used

    February 5, 2025

    No.  If you did not get the credit nor take delivery, then you would not fill out the form for the credit since there is no vehicle to apply the credit to. 

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    February 10, 2025

    Has anyone gotten their Form 8936 Schedule A to generate? I see Form 8936 has been generated in my list of forms, but not Form 8936 Schedule A...

    February 10, 2025

    Hi there, 

    I did see form 8936 and schedule A both on my printed copy of my federal return. I did not submit my return yet as I read people were getting auto rejections. Unsure if that was resolved or not yet, waiting for a response on that.

    The form appears to have completed necessary questions. 

    CatinaT1
    February 10, 2025

    Before you file be sure to check the following steps: 

     

    Please follow these steps:

     

    1. Check the report that you received from the dealer and make sure it is correct and matches what you have entered on your tax return.

    Dealers who sell vehicles eligible for a used (previously owned) vehicle credit under IRC 25E must furnish a report to the buyer at the time of sale and also to IRS for those vehicles to be eligible for a credit under IRC 25E

     

    2. Contact the dealer and make sure that they provided the correct information to the IRS and/or that they did provide the sale information to the IRS.

     

    If you file and get a reject, it can be due to IRS business rules:

    • VIN is incorrect (Rejection code F8936-030-01)
    • Your tax ID and VIN do not match in the IRS database (Rejection code F8936-046)
    • The credit type claimed and the amount entered on the Schedule A of Form 8936 is not matching the IRS database (Rejection code F8936-0047)
    • The purchase date is inconsistent with the IRS database (Rejection code F8936-048)

    If number 1 and 2 are true and the IRS still rejects your tax return, you will have to print and mail the return, including substantiating documentation for the claim of the credit.

    Clean vehicle credit seller or dealer requirements | Internal Revenue Service

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    February 17, 2025

    I just received the same notice. However, when I look at the transcript through IRS.Gov, my 8936 Schedule A doesn’t show my vin, service date, or the credit amount. Shouldn’t that have the information I entered into Turbotax?

    February 18, 2025

    To get to the section of your return to enter information needed to claim the Energy-efficient Vehicle Credit, go to Deductions and Credits > Cars and Other Things You Own > Energy-Efficient Vehicles and click Start or Update.

     

    This will take you through the process of claiming a credit for purchasing an EV.

     

    Or, click the magnifying glass at the top of the screen and enter 'electric vehicle' into the search box.  Then click the link provided by the search.

     

    @shorthills8 

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    February 23, 2025

    I am having the same issue.  I e-filed my federal and state forms.
    Received a letter from IRS dated 17-Feb-2025, you required to file a completed form 8936, Clean Vehicle Credits and Form 8936, Schedule A.

    What do I need to do ?

    February 23, 2025

    Click on "forms" and type in Form 8936. Also type in Schedule A (8936). You will need both. If you are using EasyStep, the process is under "credits" on taxes.

    February 23, 2025

    In talking with Turbotax advisors (one of their tax advisors, who also drew in a higher level tech person) I discovered that a flaw in the programming is that if you answer the question of whether you received the credit from the dealer with "yes," the forms do not compute your credit right; in fact, the program will tell you that your credit is ZERO. This is a glitch in the system. I was instructed to answer the question with "NO" to obviate the problem, but this results in form 8936 wrongly stating that you did not receive the credit from the retailer. Turbotax needs to fix this. But in the meantime, if you do not mind filing by mail, you can correct the response on a hardcopy of 8936.

    Hopefully someone from Turbotax sees this and effects the change.