New Prime purchase. About the federal rebate

I'm not understanding what you are referring to here. What is Trump's 2020 tax proposal? If you are referring to the White House budget, then there is nothing to worry about. The White House budget is rarely, if ever, close to what actually becomes law after Congress works through their appropriations bills. In a divided government like we have now, the House will be very far away from whatever is in the White House budget, and the Senate has already stated that they aren't even going to bring it up for discussion.

 

The White House budget is simply the president's wish list. Congress will decide what the real budget is. This is how it has been for a long time for presidents of both parties.

 

it's surprising how many people don't understand that.

 

The cutoffs / phase-outs happen by calendar quarter.

From IRS notice above:

"IR-2019-57, March 26, 2019

WASHINGTON — The IRS announced today that General Motors, LLC has sold more than 200,000 vehicles eligible for the plug-in electric drive motor vehicle credit during the fourth quarter of 2018. ..."

It seems that there is a full quarter's delay for bureaucracy to catch up with the sales figures and then issue advance notice of the phaseout schedule. I.e. the delay from the 200,000th qualifying sale until start of phase-out is at least 3 months, but probably not more than 6 months.

50% credit for first 6 months, then 25% credit for second 6 months. Then 0% after that.

 

Congress rarely moves that fast.

And right now, almost everything the Democrat House passes ends up dying in Mitch McConnell's Inbox, while the fewer things passed by the Republican Senate don't get enough House support. And with neither side getting serious about the budget deficit, they both realize that the only way to get much of anything done is for both to approve the other side's pork too.

So it seems very unlikely that this pork XXXX these tax credits will be cancelled early. Everyone has bigger fish to fry.

 

Thank You Fuzzy1 and all others! From what I am gathering, sounds like the 4500 tax credit has minimal chance of being eliminated!

 

Just received notification from Turbo Tax that my federal return was rejected due to a change to the EV federal tax credit. Anyone else get the same? Turbo Tax says the EV federal tax credit update will be ready on Thursday, 2/20. I have no idea what changed, but supposedly some kind of amendment to the Tesla tax credit.

EDIT: Looks like Tesla owners are receiving the same message:

Form 8936 Qualified Plug-In Electric Drive Motor Vehicle Credit STILL not ready on TurboTax | Tesla Motors Club

 

yep, we got that same message today too. Really frustrating, after waiting until mid-Feb just to get the form!

 

I efiled via TurboTax 2/12 as soon as form 8936 was available. Return accepted by IRS. Haven't received any TT notification

 

Supposedly Turbotax calculated the Tesla phase-out credit wrong. So maybe since you have a Prime, you are OK.

 

Yeah, super frustrating.

 

wait, I didn't buy a Tesla but still got rejected. I don't think it is Tesla specific.

 

Yet TurboTax still says form 8936 is available:
IRS forms availability table for TurboTax individu... - Community

 

Turbotax fixed the bug in their software yesterday. I was able to file and get my federal and state returns approved.

 

Just bought a 2020 Prime (Feb 2020). Can I file the 8936 with my 2019 Fed return?

 

No.



2019 Instructions for Form 8936
Qualified Plug-in Electric Drive Motor Vehicle Credit (Including Qualified Two-Wheeled Plug-in Electric Vehicles)