Forums

Claiming Tax Credit from IRS

Claiming Tax Credit from IRS

This question regards submission of my request for $7,500 tax credit for 2018. My accountant seems fairly blase regarding submission of forms, while someone on this forum referenced a form 8936 obtained from the IRS that has a maximum credit in box 10 of $2,500 per vehicle. So there is some confusion in this matter. Is there one of you smart people out there who can clear up the murkiness of this important issue.

surfpearl | 20. januar 2019

I'm not an accountant, but I can read :)
The line/box 10 is in Part II which pertains to the business/investment use part of vehicle.
Are you using the car for business purpose as well as personal?
If that's your case please note that there is also Part III to help you figure out the percentage of personal use.
If the business use doesn't apply to you, ignore Parts II & III and don't bother with line/box 10.
Just enter $7,500 on line 4 and that's it, you're done with form 8936.
Have a look here for the recent discussion on this topic
https://forums.tesla.com/forum/forums/2018-federal-tax-credit

stevenmaifert | 21. januar 2019

Some "professional" tax preparers get hung up on Line 17 of Form 8936 and will tell you the maximum credit per vehicle is $2500. If that happens, refer them to the last sentence in Line 15 which says " If the vehicle has at least four wheels, leave lines 16 and 17 blank and go to line 18". Also consider getting a new tax preparer who can read and follow directions.

ODWms | 21. januar 2019

“Also consider getting a new tax preparer...”
—————

^^^^THIS^^^^

aptwo | 21. januar 2019

Hi jacking this post to ask how can I get Form 8936 ? IRS website only has the 2017 form up. Or can you file with form 2017?

RES IPSA | 21. januar 2019

I read on a different thread that the 2018 form should be available soon on the IRS website, like by 2/1/19

samirtalati | 12. april 2019

If i have 100% business use and model 3 on s corp name. If i don't have enough tax to pay for corp, can i still get my $7500 credit?

syclone | 12. april 2019

Used Turbotax - Easy-Peasy. "They have the forms"

jjt2122 | 13. april 2019

Used TurboTax too, got the full $7500 tax credit, I was technically gonna owe $1K but the tax credit offset that amount so I actually got $6500 since my employer didn’t take enough taxes out of my paychecks for the year.
TurboTax was super easy to enter everything.
Here is a YouTube video i made showing how it worked.
https://youtu.be/F5xGYJKcyIw

gballant4570 | 13. april 2019

I use TaxSlayer, an online tax preparation software. You just go through data entry/questions, and the forms come out prepared. On my form resulting from this process, the $2500 max per vehicle is for business use vehicles. The top part of the form is for personal use vehicles.

OP, I would look into a good tax preparation software tool. Might do better than your backward accountant. The only time I hired one (years ago) they wanted more $ per form than TaxSlayer wants for the entire package.

kevin_rf | 13. april 2019

One thing I have noticed using turbo tax, the difference between the refund box and the you owe box (besides a few microscopic words) is there font changes color. Since what I owe was a little over half the credit the numbers started about the same leaving me thinking I still owed about $2900. Didn't realize until I looked at it with a fresh pair of eyes a few weeks later. Best part was entering an additional deduction and the number going up and going why did my taxes go up... You would have thought that would have been a clue.

lunde | 13. april 2019

I did our 2018 taxes using TurboTax in late March, and was easily able to claim two $7.5K tax credits for the two M3Ds that we purchased in 2018 for a total $15K tax credit.

M3phan | 13. april 2019

Ditto TurboTax.

jjgunn | 13. april 2019

I use H&R Block - same thing all good

Mediumed | 13. april 2019

I did my taxes very early (First week of February) and the IRS would not allow my accountant to submit form 8936. It seems that they dont accept the form until they are good and ready. I had to wait over a month to submit my $7500 tax credit.

Bighorn | 13. april 2019

I filed mine on February 25 with an 8936

Shesmyne2 | 13. april 2019

We filed w/a professional and had no problems. 2nd time around for us.
Actually would have had to pay were it not for the credit.

Still Grinning ;-)

Teslanene | 14. april 2019

My tax liability was 8400. With 2 kids it’s drop too 4400. The $7500 gets applied it’s drop too $0. I get full fed withholding plus $2800 for both kids. If I take out the 7500k credit refund drops by 7k. Does that mean I only got 7k of the credit?

Tronguy | 14. april 2019

@Teslanene: No offense, but it looks like you're stuck and don't get the full value.
11 years ago, put in a solar panel system, back when they were significant $$. Using the 30% of the cost against taxes deduction, couldn't take it all the year it went in, but the rules were set up so, if one couldn't get to use all of the credit one year, one could use the remainder the following year or three (assuming it would get out that far).
The car credit is only for the year one bought the car, period. So, if you bought the car in 2018 and your taxes, before the credit, were less than $7500, your taxes get nulled out and you're out the extra. (That is: If your taxes, before credit, were 6000, then you get $6000 of credit, and the extra (7500-6000 = 1500) disappears into the ether.
It's 'way too late, now, but if you had planned to rebalance your financial portfolio, last year would have been a good time, because the taxes on any capital gains could have been reduced or nulled out by the tax credit. Oh, well.

Teslanene | 14. april 2019

@tronguy playing around with numbers, If I had rollover an IRA to a Roth that would have added 20k to my income, but then my tax liability would be higher but my refund would be smaller about 3K less as I wouldn’t qualify for the additional child tax credit of $2800. Like I said before I take out the $7500 EV credit my refund drops about 7k. I guess having children and no tax qualified me for the additional child tax credit. In the previous years I never received it.

nwfan | 15. april 2019

All worked for me when my taxes were prepared back in Feb.
Received the 7500 tax credit and additional credits for
home solar project in 2018.

Ended up paying IRS today. I'm sure many on here
ended up doing the same.

mazers | 15. april 2019

See on the online IRS site that my refund has been reduced by 7500. Interesting that it is the exact amount of the EV Tax Credit. I'll have to see when I receive the letter that explains it. Anyone else get their refund reduced? I certainly paid more than 7055 in Federal taxes.

mazers | 15. april 2019

Sorry, make that more than 7500

ODWms | 15. april 2019

I received full $7500 credit, no problem.

Teslanene | 26. april 2019

My refund is taking longer than average, I’m thinking because of the $7500 credit. Did everyone receive their refund on time? I’m comparing file time to refund from the previous years.

spuzzz123 | 26. april 2019

No delays for me. Under 3 weeks

jimglas | 26. april 2019

Just got my $85k tax refund
$60k for business use of the MX
and $25k for MX and M3

nice

rdavis | 26. april 2019

@mazers, when did you receive you model 3 and how much was your federal tax liability before the credit?

keydel | 26. april 2019

@jimglas If you're comfortable discussing, how does one get a $60k refund for using a car for business?

jimglas | 26. april 2019

@keydell: Section 179
https://www.marketwatch.com/story/use-your-car-for-your-small-business-t...
Fortunately for me I was able to use the one time only depreciation over 1 year in 2018
I was going to buy a M3, but with this, the MX was actually cheaper
(then I bought a M3 also ....)

keydel | 26. april 2019

@jimglas Thanks!