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WARNING: H & R BLOCK DOES NOT SUPPORT FORM 8834 $7500 FED TAX CREDIT

WARNING: H & R BLOCK DOES NOT SUPPORT FORM 8834 $7500 FED TAX CREDIT

HERE IS THE TRANSCRIPT:

You have been connected to Victoria R.
Victoria R: Hello JOE, welcome to H&R Block At Home Live Chat Support! Please allow me a few moments to review the information you have submitted to us.+
JOE: OK
Victoria R: Is this a child tax form?
JOE: Qualified Plug-in Electric and Electric Vehicle Credit
Victoria R: Thank you, allow me a moment to check on this for you.
Victoria R: I have located an answer to your question, Unfortunately, this form is not available in our software or online products this year. We are looking to possibly to add it to our products for future years.
JOE: THEN HOW DO I GET A REFUND …I NEED IT THIS YEAR!!!!
Victoria R: Are you filing online or via software?
JOE: ANY WAY I CAN….
Victoria R: Where did you purchase the software you are currently using?
JOE: STAPLES
Victoria R: To obtain a refund for software you purchased in a retail store, send a copy of the original sales receipt showing the H&R Block software purchase, along with the original UPC code from the bottom of the H&R Block software box within 60 days from the date of purchase.
If you destroyed your box, or used your UPC code to obtain a rebate, you can send the CD in place of the UPC code.
Send these items to:

H&R Block Software
P.O. Box 32110
Kansas City, MO 64171
JOE: WHY CAN'T THE LOCAL H&R BLOCK PEOPLE USE THE FORM AND FINISH THE JOB?
Victoria R: You may file at an H&R Block tax office, just not through our online or software program.
JOE: FOR FREE SINCE YOU CAN'T DO IT?
Victoria R: No they will have a charge, they are charging a tax preparation fee.
JOE: CAN I ADD IT MANUALLY TO THE PROGRAM AND FILE A PAPER RETURN?.
Victoria R: No I apologize for the inconvenience but that is not possible either.
JOE: BY THE WAY, THERE ARE THOUSANDS OF PEOPLE WHO NEED THIS FORM NOW AND WILL NEVER BUY YOUR SOFTWARE AGAIN….I'LL POST THIS ON EVERY EV BLOG ON THE INTERNET.

Jken3 | February 15, 2013

I've used TurboTax (née MacinTax) for 20 years. Just checked and it DOES have form 8834.

stevenmaifert | February 15, 2013

The Form 8911 we use to claim the 30% Alternative Fuel Vehicle Refueling Property Credit and the Form 8936 we use to claim the $7500 Qualified Plug-in Electric Drive Motor Vehicle Credit for the 2012 tax year will not be available for filing until the first week in March. Ref: http://www.irs.ustreas.gov/uac/Newsroom/List-of-IRS-forms-that-1040-file...

I do my taxes the old fashion way. If your tax preparation software help line folks are not aware of the above, or will not update their software when the forms are available, fire them!

welockett | February 15, 2013

Form 8834 is for 2 or 3 wheeled EV's. I think you should be using form 8936 to claim the 7500 for the Model S.

Jewsh | February 15, 2013

That is too bad you had an unfortunate experience with H&R (c0ck) Block. I now have a very good tax guy and he does mine, my wife's and our business' taxes. He always had good information and knows all the right forms and deductions to use. (We're in Canada though, otherwise I'd recommend him.)

-J.

JoeFee | February 15, 2013

Thanks for all the helpful comments …

jat | February 16, 2013

Note that TurboTax has a similar issue for the state tax credit in Georgia, and that may be a problem in other states as well. It didn't include a form I needed, so my tax credit was denied and I had to go through all sorts of hassle and file an appeal (which isn't done yet). So, this year I won't be filing the state forms electronically, but will print them out and then add that form myself.

cerjor | February 16, 2013

Just finished my taxes using TurboTax. They included 8936 and I got the $7500 credit. However the IRS will not allow electronic filing. Tax forms that include 8936 must be mailed in.

jat | February 16, 2013

@cerjor - last year I filed my federal taxes electronically with TurboTax, including the 8936 for the LEAF and got the credit with no problem.

Robert22 | February 16, 2013

For the accountants: Any justification for such supreme stupidity (mail vs. efile) or just a revenue retention tool?

Brian H | February 17, 2013

There was some doubt leading up to the "Cliff" if the credits would survive. The safer default was to suspend them. Takes time to get the gears meshing again.

KevinR.co.us | February 17, 2013

From my accountants this week,

"The IRS is not yet accepting e-filed returns that have the credit form for the Tesla – they are saying that they won’t be ready for that form until sometime in March"

trekkiegod | February 17, 2013

Wow, dude. The tech support person talking to you didn't design the software and personally make the decision to not include the required form. Did you really need to be that rude?

They offered you a refund on the software. Take the refund, and use another tax software. What's the big deal?

ghillair | February 17, 2013

@nike

At the moment there is no end to the credit. Congress can and does change tax law regularly and can ended any time. It is there for 2012 taxes and will be there in future years if no changes are made.

The credit is for the first 200,000 vehicles of a manufacturers model. I am not sure if each model gets 200k or total for the manufacturer. After 200k there is a reduced credit for two more quarters then it is gone for that manufacturer.

Go to IRS.GOV and read the instruction for form 8936.

MB3 | February 17, 2013

It was difficult to figure out without help from H&R block, but you can use TaxCut software. As instructed in form 8936, go to line 53 of the 1040 (do this by opening forms in TaxCut) and check the box that says "other", enter "8936" in the text field and type 7500 in the box. the software give you the credit. You will need to mail in the form instead of e-filing.

stevenmaifert | February 17, 2013

Why not wait a few more weeks until the IRS is ready to accept the e-file version of the forms: http://www.irs.gov/uac/List-of-Available-Free-File-Fillable-Forms

tang | February 20, 2013

I don't know about you. But in the online version of Turbo Tax, I originally had the 7500 credit. But when I logged in recently, it is no longer in my running total. If I go and add it in again, I see:

Good news! We've calculated a credit of $0. for your plug-in electric drive vehicle.

Is anyone else seeing this?

jackhub | February 20, 2013

I believe the IRS has not yet issued the 2012 version of form 8936 and Turbotax is bouncing any attempts to use the form pending its issue. At the beginning of each Turbotax session updates are queried. Let's hope it will show up when it is issued.

stevenmaifert | February 20, 2013

The 2012 versions of Form 8911 and Form 8936 are available now for filers who mail in a paper return. The IRS will start accepting them the first week of March: http://www.irs.ustreas.gov/uac/Newsroom/List-of-IRS-forms-that-1040-file...

http://www.irs.gov/pub/irs-pdf/f8911.pdf
http://www.irs.gov/pub/irs-pdf/f8936.pdf

Stay tuned here: http://www.irs.gov/uac/List-of-Available-Free-File-Fillable-Forms to see when they will be available for e-filers who file here: http://www.irs.gov/uac/Free-File:-Do-Your-Federal-Taxes-for-Free

For those who use commercial tax preparation software... Good luck!

JoeFee | February 22, 2013

@ trekkiegod rude?

I thought I was a puppy dog on this given I spent $50 & 2 hours filling out the data (until I reached this issue) and another 45min on the phone/chat …having spent 119K for the car, I don’t need a refund …I want the service I paid for!

montgom626 | February 22, 2013

Turbotax Prmier works fine with both the EV tax credit and the EVSE CREDIT.

foxwiz | October 25, 2013

I just checked the form 8936 off the IRS website and it says on Part III, line 15 to enter the amount from line 4, which should be $7,500.

Then line 15 says to multiply line 15 by .10 which gives $750.

Line 17 says if you skipped Part II (for business vehicles) which I did skip, enter $2,500.

It doesn't look like you can get the $7,500. I am still confused. It is now October and the 8936 form is for year 2012. Anyone know what to do?

stevenmaifert | October 25, 2013

Read line 15 carefully. "If the vehicle has at least four wheels, leave lines 16 and 17 blank and enter this amount (the amount from line 4) on line 18." You get the $7500.

AmpedRealtor | October 25, 2013

Wouldn't you use Form 8910 for a Model S, not Form 8936?

foxwiz | October 25, 2013

@AmpedRealtor. I was just looking at form 8910 and it looks like it applies to hydrogen fuel vehicles. Did I read it wrong?

stevenmaifert | October 25, 2013

AR - Only if your ModS uses hydrogen fuel cells. Ref: http://www.irs.gov/pub/irs-pdf/i8910.pdf Otherwise use Form 8936 - Qualified Plug-In Electric Drive Motor Vehicle Credit.

AmpedRealtor | October 25, 2013

Yup, thanks for pointing that out.

foxwiz | October 25, 2013

@Stevenmaifert

Line 15 should be $7500. Line 16, you multiply by .10 and that gives you $750.

Line 17 states that if you skipped Part II, which I did because I am not using vehicle for business, to enter $2500.

Then it says to enter your tax liability on line 20.

Line 23 says to use either your tax from line 20 which mine is greater than $7500 or use line 19 which is $2500.

Not sure how to get the $7500 tax credit. This is driving me crazy. My tax accountant thinks I can get the $7500 but doesn't see how using this form.

SUN 2 DRV | October 25, 2013

foxwiz: Steven already answered your question above, just by quoting the instructions from Line 15 on the 8936 form.

"If the vehicle has at least four wheels, leave lines 16 and 17 blank and enter this amount on line 18....."

Read it again slowly.

Put $7500 on line 15
Leave lines 16 and 17 blank
Put $7500 on line 18

There, you have your $7,500 credit.

foxwiz | October 25, 2013

Oops. Both of you are correct. Sorry that I missed it more than once. Thanks!

Velo1 | October 25, 2013

Gosh, with so much confusion by accountants and/or software, or simply owners filing on their own; it kind of makes you wonder how many Model S buyers in 2012 missed out on their credit. I know I had to help my accountant with both our Federal and State (CO) credits, but everything went through just fine.

Mark2131@CA-US | October 25, 2013

I doubt many Tesla owners missed out. I give them more credit than that... $10K credit in fact!

stevenmaifert | October 26, 2013

If you go back on this forum to the Jan-Mar '13 time frame, you will see there was much discussion and confusion regarding the Qualified Plug-in Electric Drive Motor Vehicle and the Alternative Fuel Vehicle Refueling Property Credits. Particularly noteworthy was how clueless the professional tax preparers were on these credits. Another tidbit to tuck away... The American Taxpayer Relief Act of 2012 (fiscal cliff legislation) reinstated the general sales tax deduction for tax years 2012 and 2013. Ref: http://www.gpo.gov/fdsys/pkg/BILLS-112hr8eas/pdf/BILLS-112hr8eas.pdf Section 205. What that means is if you itemize your deductions on your Federal tax return, on Schedule A Line 5 you can take the larger of either the state income tax you paid or the state general sales tax you paid. There is an income based formula you use to arrive at what general sales tax you paid to which you then add the sales tax you paid on big ticket items. Automobile purchases qualify. In my personal case, I purchased both a ModS and a Leaf last year, paid a ton of CA sales tax and made out much better taking the general sales tax deduction rather than the state income tax deduction.

AmpedRealtor | October 26, 2013

So I am using my Model S 100% for business, does that mean I do not qualify for the $7,500 tax credit and must instead take a deduction for the first year of depreciation?

ausdma | October 26, 2013

For the Alternative Fuel Vehicle Refueling Property Credits, did anyone last year claim the cost of the HPWC as part of the calculation?

stevenmaifert | October 27, 2013

@ausdma - The good news: the cost of the HPWC and its installation qualifies for the personal use part of the credit. The bad news: The credit is subject to offset by the Alternative Minimum Tax. Best to check with your tax pro. If you pay AMT, you may be SOL.

docdac | October 28, 2013

I paid AMT, but still qualified for $7500 fed tax credit on 2012 taxes. The instructions on the form are extremely confusing, but accurate if read carefully. My tax accountant had to read this through more than once, initially concluding that I only qualified for $2500 credit , but eventually getting coming up with $7500.

stevenmaifert | October 28, 2013

AFAIK, the AMT does not affect the $7500 Qualified Plug-in Electric Drive Motor Vehicle Credit, just the Alternative Fuel Vehicle Refueling Property Credit. The offset is taken on Line 17 of Form 8911.

Land of Texas | October 4, 2014

So has H&R Taxcut updated its software to be able to include Form 8936 or am I switching to Turbotax this year after using H&R Taxcut for 12 years.

JoeFee | October 5, 2014

@land

Call them to be sure!