Question

In 2024, I purchased an EV and transferred the credit to dealer at sale. When filling form 8936, it says "Your total personal portion of New Clean Vehicle is Zero", why?

Forum|Forum|1 year ago
January 25, 2025
3 replies
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I transferred the credit for purchasing clean EV to the dealer, which they deducted at point of sale. I am eligible for this credit based on prior year AGI (per IRS website). However, when filling out the Clean Vehicle Credit, it says personal portion is zero. What does this mean? Does it mean I am not eligible for the 7500 or it just means no additional credit can be claimed? Do I have to pay the credit back? I am sure I'm eligible based on 2023 AGI. Thank you for your help!

DoninGA

You transferred the credit to the dealer and got a lower price for the vehicle purchase. You are not eligible for the credit.

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derian93Author

The IRS sent me a mail to submit form 8936 Schedule A, which basically is what I am doing, but the response is total personal portion is zero. I am not sure if it means there wont be additional credit or I am not eligible for the 7500 to begin with, which I am sure I was based on 2023 AGI. If not what’s the purpose of submitting this form?

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dare88

did you get your answer yet? I have same issue

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Subliminll

I also noticed turbotax does not correctly calculate whether you are eligible or not for the tax credit. The IRS website states:

"You can use your modified AGI from the year you take delivery of the vehicle or the year before, whichever is less. If your modified AGI is below the threshold in 1 of the 2 years, you can claim the credit."

https://www.irs.gov/credits-deductions/credits-for-new-clean-vehicles-purchased-in-2023-or-after

Also -- Turbotax does not allow users to fill out form 8936 or Schedule A (Form 8936) to calculate if the user transferred the tax credit to the dealer and then made more than the max amount allowed of AGI, and whether the user has to repay the credit or not. In my case I transferred the credit but made more than max amount but turbotax doesn't allow me to fill out the forms to show that I owe the $7500 back to IRS.

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Swimmerbhs

I had tax liability but still got a refund. so i will get to use half the credit. When reviewing the document nothing comes up in part 2-4. have not submitted it. but was on the phone with support for 20 minutes and then was hung up on.

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andresu13

I am in the same situation. I got the message saying that the "Total Personal Portion of your New Clean Vehicle Credit is Zero". I transferred the $7500 credit to the dealer when I bought the vehicle. My MAGI is under $300,000 (married filling jointly).

This message is confusing. Does it mean we don't qualify for the credit and need to return the $7,500? or that the credit was already applied when it was transferred to the dealer and therefore there is no "credit" given in this tax return?

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Mitch56

It shows up zero since you already transferred your EV credit to the dealer who credited the EV credit amount off your vehicle purchase price. You should have already received an IRS notice of the dealer reported EV credit transfer. Form 8936 just confirms your intent of EV credit transfer to the dealer. When you review Turbo Tax "Forms" section under Form 8936 and 8936 Schedule A, you will see what gets reported to the IRS from you when you file your taxes. Let's say for grins that you did not transfer the credit to the dealer at time of purchase, you can then take the credit yourself when filing your taxes and the credit amount would show for you assuming that you are eligible to received (i.e. within MAGI guidelines, vehicle qualifies, etc...). So all is well 🙂