TurboTax IRS Form 8936 Qualified EV Credit Section Now Available

[JimG]

I don't like TurboTax, largely because of their lobbying practices.

I've been using https://www.freetaxusa.com for a few years now -- just filed my taxes, and it's been approved by the IRS (took about 1 hour before I got the notice the IRS accepted it). It's free for federal, and $14 for state.

Form 8936 was already part of their credit fow. To note, I bought my 2023 Mach-E in Dec 2022 and was able to submit for the full credit.

I also use www.freetaxusa.com. Forms 8936 and 8911 were in it and were extremely easy to use. Kudos to JustSomeQuickGuy as after reading your thread, I sat down and used the program and was elated with the results.

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[JustSomeQuickGuy]

I also use www.freetaxusa.com. Forms 8936 and 8911 were in it and were extremely easy to use. Kudos to JustSomeQuickGuy as after reading your thread, I sat down and used the program and was elated with the results.

Great! Hope it all works out! I just confirmed the IRS has approved the refund along with the 8936 full credit, direct deposit scheduled for Jan 31st.

General note to anyone reading, before I purchased the car, I was confused on how the credit worked.

I heard it was a credit that you received in a refund and I had heard that you would only get the credit if you owed the government taxes.

So, for example, if you owed $5000 in taxes, that the EV credit would cover that $5000 so you owe $0, but the remaining $2500 was "gone". I was confused because even when you Google "how does the 2022 ev tax credit work", the first result is this link that says "The credit is nonrefundable; it can lower your tax bill to zero, but it won’t result in a refund."

Anyway, not a tax professional, this is based on my experience filling in the boxes in tax software -- where I was going to get a tax refund regardless of the EV credit, the EV credit just increased what they were going to give me by $7500 and the IRS agreed in the form of a refund deposit.

 

[RickMachE]

Great! Hope it all works out! I just confirmed the IRS has approved the refund along with the 8936 full credit, direct deposit scheduled for Jan 31st.

General note to anyone reading, before I purchased the car, I was confused on how the credit worked.

I heard it was a credit that you received in a refund and I had heard that you would only get the credit if you owed the government taxes.

So, for example, if you owed $5000 in taxes, that the EV credit would cover that $5000 so you owe $0, but the remaining $2500 was "gone". I was confused because even when you Google "how does the 2022 ev tax credit work", the first result is this link that says "The credit is nonrefundable; it can lower your tax bill to zero, but it won’t result in a refund."

Anyway, not a tax professional, this is based on my experience filling in the boxes in tax software -- where I was going to get a tax refund regardless of the EV credit, the EV credit just increased what they were going to give me by $7500 and the IRS agreed in the form of a refund deposit.

Yes, it is a non-refundable tax credit.
Yes, if your tax liability is only $5,000, you won't get the full credit.

The fact that you were getting a refund is irrelevant. What is relevant is that you overpaid your taxes by some amount (the refund you were getting) AND then you had the tax credit, so your total refund is the initial refund plus the $7,500. But your tax liability was larger than the $7,500.

 

[JustSomeQuickGuy]

Yes, it is a non-refundable tax credit.
Yes, if your tax liability is only $5,000, you won't get the full credit.

The fact that you were getting a refund is irrelevant. What is relevant is that you overpaid your taxes by some amount (the refund you were getting) AND then you had the tax credit, so your total refund is the initial refund plus the $7,500. But your tax liability was larger than the $7,500.

I think that's the piece I've been missing in all of this -- $7500 tax liability which is determined by your earnings -- not how much you paid (or overpaid) on that liability. Thank you sir!

 

[Warp Asylum]

FYI for those confused (like I was) by the charging station credit showing $0:
https://ttlc.intuit.com/community/t...on/form-8911-not-working-correctly/00/2499726

Check your tentative minimum tax. I had to go into the AMT section and even though I don't have to pay AMT, the calculated tentative minimum tax was higher than my tax liability after the $7500 EV credit. Unfortunately that disallows the charging station credit, which I confirmed looking both at Form 8911 and the instructions for it.

As a test, I removed the EV credit and confirmed that the charging station credit then shows as expected because my liability was higher than the tentative minimum tax. Obviously I am going to take the EV credit over the charging station credit.

The linked thread is from last year but the analysis still applies to this year. TurboTax obscures this information as Form 8911 is not included if the calculated amount is $0.

 

[Shelbeast]

The IRS site says vehicle must be under 14K gross weight. What does that mean?

 

[RickMachE]

The IRS site says vehicle must be under 14K gross weight. What does that mean?

Seems pretty clear. Since your car is 5,000 pounds, why do you care?

 

[Maquis]

The IRS site says vehicle must be under 14K gross weight. What does that mean?

Every vehicle has a Gross Vehicle Weight Rating (GVWR). It’s shown on a sticker on your door jamb. MME is well under 14,000 pounds.

ETA - What Rick said!

 

[Shelbeast]

Every vehicle has a Gross Vehicle Weight Rating (GVWR). It’s shown on a sticker on your door jamb. MME is well under 14,000 pounds.

oh, my bad! I read it wrong

 

[MacherAWD]

Has anyone filed their taxes yet with the EV Credit? Turbotax is telling that the form is being updated by the Gov and it wont be ready until 2/9. I already keyed in all the info, I got the message as I was checking out to file.

 

[connoisseurr]

Has anyone filed their taxes yet with the EV Credit? Turbotax is telling that the form is being updated by the Gov and it wont be ready until 2/9. I already keyed in all the info, I got the message as I was checking out to file.

If filing through TurboTax, no; still on hold. Others have had success with different providers, such as HR Block.

 

[Shelbeast]

If filing through TurboTax, no; still on hold. Others have had success with different providers, such as HR Block.

Thanks! Yeah, I should go to HRB, but my TT is done except the damn form. Do we expect refund delays like last year?

 

[MacherAWD]

Thanks! Yeah, I should go to HRB, but my TT is done except the damn form. Do we expect refund delays like last year?

Same boat, a few years ago I tried HRB it was a pain, and its so much easier to use the same company year to year. Last year I was filed by mid feb and didnt have any delays, so as long as 2/9 doesnt slide again we should be good.

 

[RickMachE]

Has anyone filed their taxes yet with the EV Credit? Turbotax is telling that the form is being updated by the Gov and it wont be ready until 2/9. I already keyed in all the info, I got the message as I was checking out to file.

You cannot file with TurboTax until every form is ready.

If you go to Forms View, you will see in big red type on the 8936 the words "DO NOT FILE".

Right now they are saying 2/9/23, but that date has shifted 3 times so far. It may shift again. Last year it was ready in March...

 

[RickMachE]

Thanks! Yeah, I should go to HRB, but my TT is done except the damn form. Do we expect refund delays like last year?

I filed my taxes last year on 3/29/22. My refund was in the bank on 4/6/22. What delay?

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