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February 9, 2025
Question

Invalid VIN number

  • February 9, 2025
  • 2 replies
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TurboTax says our Tesla Model 3 VIN (purchased in beginning of November 2024) is invalid even though we have verified multiple times the VIN is correct.   We triple checked the VIN entry on TurboTax and verified our vehicle exists on the IRS list, confirmed on our DMV validated registration, and we used an online VIN lookup to verify the VIN is indeed correct.

 

We have already transferred the tax credit to the dealer at the time of sale, and received the tax credit.  We are just trying to declare and file appropriately.   

 

Is it possible that TurboTax using a old database?

 

Please help!

    2 replies

    February 9, 2025

    In case you have tried to file your return and it has been rejected due to a mismatch, please keep reading for more information.  If you are getting an error message at the time of entering the information in TurboTax to report that the dealer took the credit, then make sure that similar letters or numbers are entered accurately -- for example, letter O and zero could be mistaken for each other; small letter l and number 1 are very similar as well.  

     

    The Clean Vehicle Credit rules change every tax year.  For purchases in 2024, one of the rules is that the seller or dealer must report the clean vehicle credit information to you and to the IRS at the time of the sale (time of sale report).  The information reported to the IRS does include the VIN number for the vehicle as well as other information about the credit.  

     

    The errors you listed are related to the information that the dealer registered with the IRS at the time of the sale not matching the information that you are reporting on your return.  If there is a mismatch, then the credit is disallowed.  

     

    If you did not receive the 'time of sale report' at the time of the sale, you should contact the dealer where you purchased the vehicle to request it.  You need to verify the information on the report and compare it to the information that you are including in your return.  If the report is incorrect, the dealer may need to file a correction with the IRS.

     

    To learn more, take a look at the following information from the IRS:

     

    How to claim a clean vehicle tax credit

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    JasonC114Author
    February 9, 2025

    We have already received our EV credit through the purchase.  The purchase price was already reduced by the credit amount. 

     

    Based on the TurboTax instructions, it appears that we still need to declare EV purchase regardless.  Even if it is just to declare that the transfer of clean vehicle credits was transferred to the dealer. 

     

    The challenge, we are having (appears to be similar to many have indicated on the form)  is that we tried to put in the VIN number.  All documentations, the car's physical VIN number, the DMV, and the Federal websites have indicated that the VIN number is correct and matches.  The only problem appears to be TurboTax stating that the VIN is invalid--when it is correct. 

     

    Not sure if this is a programing error or TurboTax's grabbing an out dated VIN database.   (This appears to be very frustrating to many users...)

     

    Again, we are not trying to get a tax credit.  Instead, we just want to input and file the correct information. 

     

    Thank you again for your help!

    February 9, 2025

    If you did transfer the credit to the dealer at the time of the purchase, you do still need to file the credit on your tax return so that things match up.  I do understand you are only trying to file the document, but not claim the credit.  

     

    I am trying to understand where in the process you are having the issue.  Is it when you are entering the VIN into TurboTax or is it a rejection after you have electronically filed your return?  

     

    @JasonC114 

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    February 22, 2025

    I bought Telsa Model 3 on 9/29/2024 which try to be credited from the clean vehicle data. VIN does not match with IRS e file in TT even though I check several times. What should I do?  

    February 24, 2025

    If you are getting a rejection that the VIN doesn't match with the IRS e-file system. 

     

    Please follow these steps:

    1. Check the report that you received from the dealer and make sure it is correct and matches what you have entered on your tax return.
    2. Contact the dealer and make sure that they provided the correct information to the IRS and/or that they did provide the sale information to the IRS.
    3. If number 1 and 2 are true and the IRS still rejects your tax return, you will have to print and mail the return, including substantiating documentation for the claim of the credit.

    @knguyen44 

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