How to claim the tax credit?

[richl025]

I see some posts about people getting a $7500 credit at the time of their purchase. I did not receive it - nor did I look for it, since I just assumed (yeah, yeah, I know) that I would claim it when I filed my tax return

Has anyone here done just that? The only documentation I have from my dealer is a handwritten form labelled "2023 IRC Section 30D Clean Vehicle Tax Credit Seller Report" that has my VIN & such, and states I am eligible for $7500 tax credit - is this what you guys have filed with your taxes to claim the credit?

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[bmwhitetx]

You don't mention when you bought - 2023 or 2024. Rebate at time of purchase is only 2024 and beyond.

If you bought in 2023 you need to file Form 8936 and Schedule A (Form 8936). In 2022 this was all one form but this year its on two "forms" confusingly labeled as underlined/linked above.

But based on your understanding so far, highly recommend you consult a tax advisor.

Edit - and if you bought in 2024, there is nothing to do now. You need to wait until you file in 2025 for your 2024 taxes.

 

[richl025]

You don't mention when you bought - 2023 or 2024. Rebate at time of purchase is only 2024 and beyond.

If you bought in 2023 you need to file Form 8936 and Schedule A (Form 8936). In 2022 this was all one form but this year its on two "forms" confusingly labeled as underlined/linked above.

But based on your understanding so far, highly recommend you consult a tax advisor.

Edit - and if you bought in 2024, there is nothing to do now. You need to wait until you file in 2025 for your 2024 taxes.

Bought in 2023 - thanks for clearing up my confusion!

R

 

[flyct]

It looks like from previous postings you bought in 2023 an receiver the Ford hand written document. That document is your proof that the dealer sold you a vehicle that qualifies for tax credit. That form doesn't get submitted to the IRS, its just for your records.

When you fill out your 2023 Federal tax return the credit should be claimed on that return. The form that needs to be completed with your return is From 8936 https://www.irs.gov/pub/irs-pdf/f8936.pdf and schedule A of 8936 https://www.irs.gov/pub/irs-pdf/f8936sa.pdf. Your accountant will be familiar with it and if you fie your own with Turbo tax or any other software it will have the form.

 

[rg7]

Just to clarify, you can use income tax returns from the previous tax year for eligibility, is that correct?

For example. Say you and your spouse earn $299,000 AGI in 2023. You buy a qualifying vehicle in 2024, but also your AGI raises to $301,000. You have to wait until you file taxes in 2025 to receive the tax credit, but are you still eligible?

 

[RickLightning]

Just to clarify, you can use income tax returns from the previous tax year for eligibility, is that correct?

For example. Say you and your spouse earn $299,000 AGI in 2023. You buy a qualifying vehicle in 2024, but also your AGI raises to $301,000. You have to wait until you file taxes in 2025 to receive the tax credit, but are you still eligible?

Correct. You can use the prior year's income. That was done for one big reason, no one knows this year's line 11 until next year...

 

[bmwhitetx]

Just to clarify, you can use income tax returns from the previous tax year for eligibility, is that correct?

For example. Say you and your spouse earn $299,000 AGI in 2023. You buy a qualifying vehicle in 2024, but also your AGI raises to $301,000. You have to wait until you file taxes in 2025 to receive the tax credit, but are you still eligible?

Yes. If you look at Form 8936 linked above, Part I has you figuring a modified income for 2023 and 2022, then using the smaller of the two. Note - it’s not just line 11 AGI. They add in some other less common incomes (e.g., foreign income) so be careful.

For next year the form will look at 2023 and 2024.

 

[onebadjon]

Don't file your 2023 taxes until after February 15th. Form 8936 will be released to use on that day.

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