Question

Vehicle credits questions

Forum|Forum|5 years ago
July 11, 2020
1 reply
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1. Last year I had a vehicle credit for 2018. I assume this was based on the purchase of a Jeep Grand Cherokee. This year, that line is left as $0 in the summary. Is there a place to correct or update this?

2. Related to #1, I bought a used 2016 Chevy Spark EV. I went through the screen for the vehicle credit but did not realize it had to be new. I assumed an in-service date of June 1, 2016, and the system would not let me put that. I thought it would delete the credit, but it still shows up. I acknowledge that I bought this used and do not want to be in violation of tax law by claiming a credit to which I am not entitled. How do I remove this? And, can I get a credit for this under the method one showed up in Question #1?

Thanks,

Jeff

VictoriaD75

You should not have received a credit for a Jeep Grand Cherokee. Review your return to determine exactly what was received.

Taxpayers are allowed a credit for the purchase of plug-in electric drive vehicles used for either business or personal purposes. The credit, which ranges between $2,500 and $7,500 for light-duty vehicles, varies depending on the weight of the vehicle and kilowatt hour of battery capacity. The vehicle must be purchased as new to receive the credit.

The credit phases out for each car manufacturer when they reach a total of 200,000 electric cars sold for use in the United States.

To determine if you are eligible, click on Deductions & Credits under the Federal menu. Under Cars and Other Things You Own, choose Start/Revisit next to Energy-Efficient Vehicles. Currently, this form is not available, as TurboTax is waiting for updates on the approved vehicles. This credit is reported on Form 8936.

Plug-In Electric Drive Vehicle Credit

To remove the form:

Under Tax Tools, choose Tools
Choose Delete a Form
Scroll through your return until you find Form 8936, click Delete to the right of the form
Confirm that you wish to delete the form