Question

Why am I not able to claim the entire credit for my electric vehicle purchase? The IRS lists the credit for my vehicle as $1,875, but Turbo Tax says I can only claim $469

Forum|Forum|6 years ago
February 22, 2020
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TurboTax Self Employed Online

The Federal Electric Vehicle Tax Credit is non-refundable. That means that it will only generate a credit to the extent of your tax liability. So if your Federal tax owed is $469, then you will only get a credit of $469, there is no additional refund that will be generated as the result of the credit.

Please take a look at your Tax Summary to see what your Tax Liability was before the credit. To View Your Tax Summary:

Choose Tools/Tax Tools/View Tax Summary. See this link for more details: View my Tax Summary before Filing (The State Tax Summary will be just above the Federal Tax Summary in the black menu also)

Please note that some states also have credits that may be different from the Federal Tax Credit for Fuel Efficient and/or Electric Vehicles.

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G

guysosteeleAuthor

Hi @karen11_2, thanks for your reply. I'm not sure this explains my situation.

Per the return generated by TurboTax, I have a federal tax liability of $6,863 (line 12a). I receive a $4,000 child tax credit, and am claiming an $1,875 credit for my Chevy Bolt purchased in 2019 (per the IRS table), totaling $5,875 in credits (line 13b). I therefore have $988 remaining in federal tax owed (before self employment tax) after the full $1,875 is credited. Should I not be able to claim the entire amount of the electric vehicle credit? Turbo tax is currently saying I can only claim $469 of the $1,875 credit.

I note that $469 is an even 25% of $1,875, and that $1,875 itself is 25% of the maximum tax credit of $7,500... does that signal something, or just a coincidence?

Thoughts?

KathrynG3

I recommend deleting the form and re-adding it to property receive the $1,875 credit.

To delete a form:

From the left menu, select Tax Tools
Tools
Delete a form
Scroll to Form 8936 and delete.
Follow through the rest of the prompts and click Done.

To re-add a form:

From the left menu, select Federal
Deductions & Credits
See All Tax Breaks, scroll down to Cars and Other Things You Own and select Show More
Energy-Efficient Vehicles click Start
Re-enter your details for the Chevrolet Bolt

Additional resources regarding Electcrical Vehicles:

Yes, as you noted, the Chevrolet Bolt credit is $1,875 per the IRS Electric Drive Motor Vehicle Credit Index of Manufacturers.

IRS Notice 2009-89

IRC 26 U.S. Code Section 30D New Qualified Plug-In Electric Drive Motor Vehicles