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IRS rejecting my VIN

IRS rejecting my VIN

My taxes were rejected for “invalid VIN” on my 2019 Model 3. I took possession Q1 of 2019 so I’m able to get $3750 tax credit. I verified the VIN, Make, and Model were correct and resubmitted. Everything was correct the first time, but we’ll see what happens. Anyone else have this problem?

-TheJohn- | 6 février 2020

Honestly? 99.6757% of the time it's user error.
I've been on both sides albeit not quite on the IRS level but people are stubborn and stupid and blind and I rarely use stupid as it's rude but when $ is concerned we all put our blinders on and squeal squeal squeal..

At any rate.. Double, triple, no really search Google again, 5th time check whether your version of reality is in fact real.

The rebate is pretty handy, don't mean to knock it!

Joe M | 6 février 2020

VIN tables were not updated as of last week. It thinks your car is from 2009. The IRS keeps pushing the availability date back but it will get fixed.

M-A-B-MCMLXXX | 6 février 2020

I believe updated forms are expected 2/15.

WW_spb | 6 février 2020

Useful information. Thanks

Wilber | 6 février 2020

Thanks kel, Joe and MAB - I am working on taxes now, but will take a week or so to finish. I'll just wait until after 2/15 to file.

rchau28 | 6 février 2020

MAB is correct. EV Rebate form not available yet.

digichemie | 6 février 2020

I did it yesterday and it went through.

NorthValley | 6 février 2020

I took delivery of my M3 in December ($1875 rebate). Did my taxes on 1/27 and have already had them accepted. Phew!

rchau28 | 6 février 2020

Which form did you file under?

digichemie | 6 février 2020

My two M3s are Aug & Sep, 2019 and I used Express 1040 (free in online) to file.

NorthValley | 6 février 2020

@rchau28...H&R Block did it all for me but I think it was 8936

rchau28 | 6 février 2020

@NorthValley..thanks. It appears the e-file form on TurboTax is unavailable until 2/12/2020. Strange that the form is available everywhere else except Turbotax.

rehutton777 | 6 février 2020

Just want to make sure I'm clear on this tax credit thing. Those of us who purchased in Q1 of 2019 are entitled to only 50% of the original $3750 tax credit, right? I'm looking at instructions for completing Form 8936 (EV tax credit form), and it allows only 50% of the original, or $1875. If I'm wrong, let me know.

andy.connor.e | 6 février 2020

Its not about when you bought. Its all about when the car was delivered. First half of 2019 yields $3750. Second half of 2019 yields $1875.

rehutton777 | 6 février 2020

NorthValley said he/she took delivery in December, claimed an $1875 credit and it was accepted. According to Form 8936, the allowable credit for a July through December delivery was only 25% of the original, or $938. Expect to hear back from Mr. IRS!

rchau28 | 6 février 2020

Just signed up on H&R Block and skimmed through the EV form 8936. I entered VIN details and showed only $1875 credit. Am I missing something since I took delivery of my M3 on 3/31/2019? I thought we were suppose to receive $3750.

rehutton777 | 6 février 2020

The Form 8936 is a little confusing. For the credit allowed (Line 4a) the instructions say "For vehicles with at least four wheels, enter the credit allowable for the year, make, and model of vehicle you entered on line 1". The table referenced then indicates for cars purchased 1/1/19 through 6/30/19, the amount to enter is $3750, then you can take only 50% of that on Line 4b. However, it may be that you are supposed to enter the full original credit of $7500 on 4a, then apply 50% of that on 4b. So, I may have spoken prematurely on the allowable tax credit - - but I was pretty certain that the sales people told me last March that my credit would be $1875. Guess we'll see?

rehutton777 | 6 février 2020

rchau28: You are correct that the tax credit was reduced by 50% if purchased in January through June, 2019. I know that when I took delivery in March, the sales people indicated I would qualify for a tax credit of $1850. If the original tax credit was $7500, why would we not be allowed to take the $3750 credit? Does anyone have any definitive answers as to what amounts should be entered on Form 8936 Lines 4a and 4c?

WW_spb | 6 février 2020

July to December is 1875

Nick V | 6 février 2020

You should enter the full original credit amount ($7,500) on line 4a of form 8936. The phase out percentage will either be 50% (if you took ownership of the car from 1/1/19-6/30/19) or 25% (if you took ownership of the car from 7/1/19 - 12/31/19). This will yield either a credit of $3,750 or $1,875, depending on which half of the year you took ownership of the car.

rehutton777 | 6 février 2020

Thank you, Nick V! That makes sense, but the instruction for Form 8936 are not clear what numbers to enter.

wb808 | 6 février 2020

The "allowable credit for the year, make, and model" for all Teslas is $7,500, so line 4a should be 7,500. Then line 4b is the % depending on when the car was acquired:

Dec 2018 and before - 100%
Jan 2019 - June 2019 - 50%
July 2019 - Dec 2019 - 25%
Jan 2020 and after - 0%

Line 4a would be less than $7,500 for cars with smaller batteries (e.g. BMW X5 40e is $4,668) but as I said all Teslas qualify for the max $7,500 then that's reduced from there as part of the phaseout.

TeslaTap.com | 6 février 2020

@rehutton777 - Now we wouldn't want the IRS to make a form that was easy or clear? Far better to confuse everyone and hope it's filled out improperly and rejected.

NorthValley | 6 février 2020

You always enter the FULL original amount of tax credit and then the % still valid, in my case 25%, in OPs case it was 50%.

NorthValley | 6 février 2020

@wb808...put much better than my effort! Thanks!

Jcoophoff | 18 février 2020

FYI to all using TURBOTAX for taxes this year, they don't have their Form 8936 ready yet (as of 02-18-2020), so I would suggest if you are claiming a federal tax credit that you don't file your taxes until after Feb 20th. All of mine returns got "rejected" this morning (1 Fed + 2 States) because of TurboTax's screw up.

I've been using TurboTax for many years, and this is the first time they have screwed up their forms this bad. Other services (H&R Block etc.) might not be having these issues.

n7vdr1 | 18 février 2020

@ Jcoophoff
Both of mine got rejected this morning as well!
Will try again in 2 days. Using TurboTax!

breakawaydream | 18 février 2020

I had the same problem this past weekend (16 Feb 20), with TurboTax. It kept rejecting the VIN for my Model 3, purchased in early Feb 2019. It also did not automatically adjust the rebate from $7500 to $3750.

WW_spb | 18 février 2020

It's bc of the form. Turbo tax now says we have to wait until Feb 20 to get updated forms.

kel_carrigan | 20 février 2020

Just to update my thread. It does seem that the IRS vin numbers were not update at the time I filed. I used Credit Karma, by the way. I resubmitted a couple days later and my taxes were accepted on the 8th. I used Form 8936.