Need help with Federal tax credit

This is how my Tax Guy did it in 2018:

 

It just asked for info like the VIN but TurboTax and H&R charge you if you need to add in the tax credit, it won't be available on their free tax return options. But paying a bit to save $4502 made sense in my situation. If you're already paying a professional to do your taxes they shouldn't need anything from you to file it. Give them a copy of your bill of sale it should have everything they'd need to get the tax credit and sales tax deductions in other sections

 

If you are having someone do your tax, then I hope the person is knowledgeable enough to ask for the information needed to fill out form 8936. I use TurboTax (paid version, I use Premier but Delux can work as well) for my income tax return. Did the form 8936 three times now. For the TurboTax interview method, all you need is to answer a few simple questions. You will need the year, make, and model of the car, when it was first put to service (not purchase date although if you bought a car that was in stock, then the day you purchased would be the first day the car was put in service), VIN, the size of the traction battery 8.8kwh, and the curb weight of the car 3,375 lbs. The program will fill the number and form, and enter appropriate credit applied to your tax liability up to a max of $4502. I just received my refund ~2 weeks ago.

 

Ditto

It's under additional credits; near the end of your TT or HRBlock software interview. If you submit your return online, your refund will be in your account in 2-3 weeks

 

Ditto, ditto... and if your tax preparer has dropped the ball on this very simple process, you may want to consider going elsewhere (what else did they forget or do incorrectly).

 

There is also a 30% tax credit for the cost of an EV charger and EV Charger Electrical plug installation.
The last year for the credit was 2021.
The charger and installation had to be done before 12/31/2021.

Next year, there is no tax credit for charger or installation that is done this year, 01/2022 -> 12/2022.


For the EV Charger and Installation tax credit, it is IRS Form 8911

About Form 8911, Alternative Fuel Vehicle Refueling Property Credit
About Form 8911, Alternative Fuel Vehicle Refueling Property Credit | Internal Revenue Service

https://www.irs.gov/pub/irs-pdf/f8911.pdf



Some videos that may help in filling out either the EV Tax Credit, or the EV Charger tax credit.

Electric Vehicle Tax Credits on IRS Form 8936
Feb 7, 2022 ; Jason D. Knott

Tax Credit on Vehicle Home EV Chargers - IRS Form 8911
Feb 23, 2022 ; Jason D. Knott

Fwiw, I use the paid version of H&R block.
However, I also print out all forms, along with saving all forms as a pdf. I then go over each form, and each line, to make sure that I understand each entry, that I didn't miss something, or enter something in incorrectly.

Good Luck!

 

Salamander said, "...appropriate credit applied to your tax liability up to a max of $4502."
Exactly. You don't automatically get $4502 just by buying a Prime. You get up to that much against your total tax amount. If your tax on 1040 line 16 is less than $4502, that lesser amount is the credit you get.

 

From:

https://electrek.co/2022/03/04/which-electric-vehicles-still-qualify-for-us-federal-tax-credit/#h-can-a-household-receive-multiple-federal-tax-credits
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Can a household receive multiple Federal tax credits?

Several readers have reached out and asked if they qualify for multiple tax breaks if they purchase more than one EV in a calendar year. Well, the short answer is yes.

However, we must preface this by relaying that the IRS is the official source for all Federal tax information and responsible for administering the Federal plug-in vehicle tax credits. It is best to consult with a qualified tax professional to make sure you do in fact qualify before purchasing multiple electric vehicles.

That being said, the fueleconomy.gov team was not aware of any limitations on the number of vehicles you may claim tax credits for provided that you have enough Federal tax burden for that purchase year.
So, if two people in your household each purchase an eligible vehicle and both have $7,500 in Federal tax burden, then each should be able to claim the tax credit.

If a single person purchases two eligible plug-in electric vehicles with tax credits up to $7,500 for each vehicle, they should be able to claim $15,000 in tax credits if their Federal tax burden is $15,000 or more for the calendar year in which they purchased those vehicles.

Again, speak with a tax professional or the IRS to be extra sure this is possible.
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Btw, the State EV incentives have their own requirements and restrictions.
For example, for Mass, the car must be kept for 36 months.
From: https://mor-ev.org/frequently-asked-questions#Application7
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What are the applicant requirements?

Eligible applicants must meet requirements that include, but are not limited to, the following:

Be a Massachusetts resident or a private business located and licensed to do business in Massachusetts.

Be a purchaser or lessee of a new eligible vehicle and submit a MOR-EV application within 3 months of the vehicle purchase or lease date and prior to exhaustion of available rebate funds.

Purchase or lease an eligible vehicle and take possession of it before applying for a rebate.

Retain ownership of the vehicle for a minimum of 36 consecutive months immediately after the vehicle purchase or lease date. Lease terms of at least 36 months are required for program eligibility.

Register the new vehicle with the Massachusetts Registry of Motor Vehicles for a minimum of 36 consecutive months for use in Massachusetts.

The MOR-EV program currently only offers rebates to consumers and private businesses. Governments, public fleets, and other entities are not eligible to apply.
====

 

Line 16 is your federal income tax before any credit is applied. It is not the refund amount. So say you have $5000 on line 16, and you have no other credit other than Form 8936 amount, then your final tax amount will be $5000-$4502=$498. If you have had tax withholding exceeding this amount of $498, then that will be your refund. If you did not have any tax withheld, then you still have to pay $498 to IRS. If your line 16 is less than $4502, say $4000, then after applying the credit, you have no tax liability. Thus, if you had no tax withheld, then you don't have to pay any tax. If you had tax withheld, then since you have no tax liability, you will get the entire amount you had withheld as your refund.

There is no limit stipulated on the IRS code that limits the numbers or amount of credit you can apply. AFAIK, you can apply for this credit multiply times as many times as you purchase a qualified vehicle and as long as you have enough tax liability to apply the credit. However, the current 30D IRS code is somewhat vague on this point if you receive the credit and trade the car year later. I and many others have done this and got multiple credits, year after year. But that does not guarantee that IRS will not ask for recapturing of credit. It is possible that IRS will ask for the credit to be returned. So, keep that in your mind.

Read this thread: Will IRS recapture the tax credit for alternative-fuel vehicles sold early? | PriusChat

Here is a copy of my comment from the thread above: