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March 13, 2022
Question

Upon adding qualifying EV vehicle credit, the qualifying EV station credit is eliminated despite meeting all tax guidelines (not an AMT issue since it is lower).

  • March 13, 2022
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1 reply

March 13, 2022

If you have any other credits, they may be offsetting your tax before your Form 8911 credit is applied, in which case the credit won’t be used.

The IRS has a specific order in which credits are to be applied to offset tax.

As far as the credits you’re inquiring about, they’re applied to tax in this order before getting to the credit on Form 8911:

  1. Foreign Tax Credit (Form 1116)

  2. Nonrefundable child tax credit or credit for other dependents from Schedule 8812

  3. Credit for child and dependent care expenses from Form 2441

  4. Education credits from Form 8863, line 19

  5. Retirement savings contributions credit. Attach Form 8880 

  6. Residential energy credits. Attach Form 5695 and, 

  7. Total other nonrefundable credits, reduced by any general business credit reported on Schedule 3, line 6a, any credit for prior year minimum tax reported on Schedule 3, line 6b, or any credit to holders of tax credit bonds reported on Schedule 3, line 6k). 

If your taxes are completely offset at this point, you have no tax for this credit to offset.  See Instructions for Form 8911 (Rev. January 2022) for more information.

In TurboTax Online, you can view your return by: 

  1. If you’re on the Hi TurboTax Client, let's keep working on your taxes! screen, with Personal Info, Income & Expenses, etc. beneath, and none of those are open, click the dropdown next to any of the categories, then click the Review/Edit or Pick up where you left off button.  Otherwise,

  2. Click on Tax Tools in the left pane.  

  3. Click on Tools. 

  4. Click on View Tax Summary. 

  5. Click on Preview my 1040 on the left side of the screen.

wchan1388Author
March 13, 2022

The EV station credit would not reduce my tax bill below zero. There would still be a large tax liability remaining. 

KrisD15
March 14, 2022

If AMT is lower, is that what would be eliminating the credit?

 

According to the IRS:

 

"(2) Personal credit

The credit allowed under subsection (a) (after the application of paragraph (1)) for any taxable year shall not exceed the excess (if any) of-

(A) the regular tax liability (as defined in section 26(b)) reduced by the sum of the credits allowable under subpart A and section 27, over

(B) the tentative minimum tax for the taxable year."

 

IRS LINK

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