What do I do if I transferred a clean vehicle tax credit to the dealer and did not qualify for it? Turbo Tax doesn't allow me to enter the vehicle since I didn't qualify.

Forum|Forum|1 year ago
January 24, 2025
3 replies
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I purchased a used EV in 2024 and my AGI does not qualify for the tax credit. I was incorrectly guided through the process and transferred the credit I did not qualify for to the dealer ($4,000). Turbo Tax does not seem equipped to handle this situation and I know I'm on the hook for the $4,000 back to the IRS.

DianeW777

In order to assist, we need more clarification as well as any questions you have about your entry, if appliable.

What is the type of vehicle?
What year is the used vehicle?

It's clear you must repay the credit if your income is over the amount for your filing status:

$150,000 for married filing jointly or a surviving spouse
$112,500 for heads of households
$75,000 for all other filers

If you would like to send us a “diagnostic” file that has your “numbers” but not your personal information it would help.  If you would like to do this, here are the instructions:

TurboTax Online:

Open your return -Go to the menu panel on the left side of your return and select Tax Tools.

Then select Tools below Tax Tools.
A window will pop up which says Tools Center.
On this screen, select Share my file with Agent.
You will see a message explaining what the diagnostic copy is.  Click okay through this screen and then you will get a Token number.
Reply to this thread with your Token number and your state. This will allow us to open a copy of your return without seeing any personal information.

TurboTax Desktop:

If you like, you can send a copy of your return that will be scrubbed to eliminate your personal data by using these steps:

Click on Online in the top left menu of TurboTax CD/Download for Windows
Select 'Send Tax File to Agent'
Write down or send an image of your token number and state then place in this issue.
We can then review your exact scenario for a solution.
Please also tell us any states included in the return. This is necessary for us to view the return.

We will then be able to see exactly what you are seeing and we can determine what exactly is going on in your return and provide you with a resolution.

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yazell-donaldAuthor

This really has nothing to do with the vehicle eligibility. The issue has been identified if you read. Schedule 2 does not match the IRS form. The following scenario is missing from TurboTax:

1b: Repayment of new clean vehicle credit(s) transferred to a registered dealer
from Schedule A (Form 8936), Part II. Attach Form 8936 and Schedule A (Form
8936) .

Please note that when I enter the information for the vehicle for which I did not qualify, it just says the credit is Zero and does not retain the information.

The vehicle is a 2017 Chevrolet Bolt. It's a BEV. It qualified for the used credit ($4,000) per the IRS guidelines.

I was over the AGI for 2022 and 2023 and did not qualify, so I need to pay the $4,000 I transferred to the dealer back to the IRS.

Token: 1263622

State: OH

Here is a link to the IRS Schedule 2 as well. If TurboTax would handle section 1b, then this would be resolved. Thanks!

https://www.irs.gov/pub/irs-pdf/f1040s2.pdf

DianeW777

Thank you for your valued feedback. We are aware of this issue and our developers are working diligently to correct it.

@yazell-donald

@Subliminll

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Subliminll

I am in the same boat. I transferred my EV tax credit to dealer thinking my AGI would be under the 150,000 limit but i was over and now need to repay the $7500 back to the IRS. Form 8936 and Schedule A (Form 8936) should be added so turbotax can calculate the amount of refund or amount owed.

S0me0ne

TurboTax team. When can we expect this fix to be rolled out to TTO customers?