EV credit form 8936

Forum|Forum|1 year ago
April 9, 2025
1 reply
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I'm running into an issue with this form and it's costing me some time. Hopefully someone that dealt with a similar situation can shed some light.

A client bought a Tesla Model Y last year. They were given the $7500 credit upfront and it was transferred to the dealer. To my understanding, they still need to report the transaction on form 8936 with the vehicle information, credit transferred and the amount of the transfer. I did all this, but it's coming up with a credit limitation of $4000. This is a new vehicle bought in cash. The client is rightfully worried that if reported as-is, they will have to pay back the remainder of $3500. Is this correct or am I missing something?

If relevant, AGI is $95913 and files has HOH.

Help!

ProSeries Professional

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Best answer by TaxGuyBill

I'm confused, doesn't that mean had they not transferred the credit, all they would be eligible for is $4000? Or that line is meaningless because they transferred it?

@ejdtaxman wrote:

I'm confused, doesn't that mean had they not transferred the credit, all they would be eligible for is $4000? Or that line is meaningless because they transferred it?

No, it does not mean that.

That is in a completely different section than the $7500 credit.

As I said before, it is a pre-printed number on the blank IRS form.

dascpa

Level 11

I have done one with the credit transferred to the dealer. Mine forms worked out fine. Make sure you haven't checked off clean used EV. That has a $4k limit.