2024 Tax Credit Screw Up

[chl]

I think they mentioned I was the first purchase of an EV in 2024 (Jan 4 2024). They never gave me any additional paper work/confirmation about the credit "before I left the dealership" as the meme suggests I maybe should have gotten, or at least I don't remember getting it.

My dealer said they were not sure how it all worked yet.

I just checked my paperwork.
They credited me with $9500 as part of an "additional down payment on delivery" on the sales paperwork, I gave them $2000 on my CC.
No where does it say they claimed the tax credit, and no confirmation about the credit.

So I guess they never figured it out and never claimed the tax credit.
They had a lot of 2023 Lightnings to move so I guess I got a better deal than I thought I was getting!
And now it seems I can claim it when I file my 2024 tax year return.
Yahoo - but I better double check before I claim it.

A little wrinkle on the income cap I was unaware of until I looked it up just now - "income for the year before:"

"To qualify for the tax credit, your modified adjusted gross income cannot exceed a certain threshold: $150,000 for single filers, $225,000 for heads of households and $300,000 for married couples. You can qualify based on your income for the year you take delivery of the vehicle or the year before."

Sponsored

 

[flyct]

I think they mentioned I was the first purchase of an EV in 2024 (Jan 4 2024). They never gave me any additional paper work/confirmation about the credit "before I left the dealership" as the meme suggests I maybe should have gotten, or at least I don't remember getting it.

My dealer said they were not sure how it all worked yet.

I just checked my paperwork.
They credited me with $9500 as part of an "additional down payment on delivery" on the sales paperwork, I gave them $2000 on my CC.
No where does it say they claimed the tax credit, and no confirmation about the credit.

So I guess they never figured it out and never claimed the tax credit.
They had a lot of 2023 Lightnings to move so I guess I got a better deal than I thought I was getting!
And now it seems I can claim it when I file my 2024 tax year return.
Yahoo - but I better double check before I claim it.

A little wrinkle on the income cap I was unaware of until I looked it up just now - "income for the year before:"

"To qualify for the tax credit, your modified adjusted gross income cannot exceed a certain threshold: $150,000 for single filers, $225,000 for heads of households and $300,000 for married couples. You can qualify based on your income for the year you take delivery of the vehicle or the year before."

if you meet the income limitations for EITHER tax year 2023 OR 2024 you will qualify . That also assumes the dealer reported your SSAN and VIN to the IRS as qualifying. Others have posted that IRS is matching vin and ssan.

 

[TaxmanHog]

SSN

 

[flyct]

Hey folks, So, Please help me here . . regarding the $7,500 tax credit.
I assumed (not good) that all I needed to do was let my Tax preparer know I bought the EV truck (2023-12-21) with corresponding documentation and they would add that to a line item on my taxes. I was not given the opportunity to transfer the credit to my dealer and get the upfront reduction in the price I paid....am I missing something.

( Knowledge is learning from your own mistakes. Wisdom is learning from the mistakes of others... )

Marsha,

Purchases delivered prior to January 1st 2024 did not have the option of applying the tax credit at the time of sale. . That started in with deliveries after January 1st, 2024.

In 2023the dealers should have reported the sale to the IRS and provided a document to you verifying that they did this. Call your dealer and ask for the Form 30D or IRS 15400 for your sale in 2023.

The form confirms that the dealer reported your sale to the IRS with your ViN number, your Tax ID number and the max credit that the sale qualifies for.

From what I was told is when you file your 2023 tax return the IRS has a database with the VIN and Tax IDs that they match to your return. If the info on your tax return doesn't match the info in the IRS database there is a potential that the tax credit will be rejected.

CALL YOUR DEALER AND ASK THEM FOR THE FORM!

I bought a Lighting and an Tesla last year. Here are the forms that those dealers provided to me for my purchases (personal info redacted).

 

[Effonefiddy Lightning]

If they've totally messed this up and can not credit the sales agreement with the $7500, then complete the purchase w/o it and file for the credit in the spring of 2025 when you file your 1040-2024.

Make sure they give you a form 15400!!!!!

Hopefully you're not at the low income tax margin where the credit might be reduced or null, if so then you won't benefit and will have missed the opportunity to legitimately secured the credit during purchase now.

Federal Tax Credits for Plug-in Electric and Fuel Cell Electric Vehicles Purchased in 2023 or After (fueleconomy.gov)

Is The 15400 for 24 MY only? Because when I did my taxes for my 23 MY on Turbo Tax the form was 8936.

 

[TaxmanHog]

Is The 15400 for 24 MY only? Because when I did my taxes for my 23 MY on Turbo Tax the form was 8936.

Form 15400 is what is called an "Information" return it will post the IRP database.

Form 8936 is a schedule that is attached to a income tax return to substantiate a claim for a credit.

At some point down the road, the two database will be rolled against each other, a match failure will cause either an audit case or a math-error case, which will result in additional communications from the IRS to individual taxpayers.

 

[RickLightning]

Marsha,

Purchases delivered prior to January 1st 2024 did not have the option of applying the tax credit at the time of sale. . That started in with deliveries after January 1st, 2024.

In 2023the dealers should have reported the sale to the IRS and provided a document to you verifying that they did this. Call your dealer and ask for the Form 30D or IRS 15400 for your sale in 2023.

The form confirms that the dealer reported your sale to the IRS with your ViN number, your Tax ID number and the max credit that the sale qualifies for.

From what I was told is when you file your 2023 tax return the IRS has a database with the VIN and Tax IDs that they match to your return. If the info on your tax return doesn't match the info in the IRS database there is a potential that the tax credit will be rejected.

CALL YOUR DEALER AND ASK THEM FOR THE FORM!

I bought a Lighting and an Tesla last year. Here are the forms that those dealers provided to me for my purchases (personal info redacted).

There is no form 30D. Section 30D is the US Code that talks to the tax credit. That form is a Ford-created form to supply the information to the buyer that is required to be given to them by the IRS. As noted previously in the thread, the dealer also doesn't have to send a copy of IRS 15400 to the buyer, they just need to provide them with that information, like the Ford form does. The IRS form gets filed by the dealership, or they send in a spreadsheet, or a bunch of the Ford forms.

 

[flyct]

There is no form 30D. Section 30D is the US Code that talks to the tax credit. That form is a Ford-created form to supply the information to the buyer that is required to be given to them by the IRS. As noted previously in the thread, the dealer also doesn't have to send a copy of IRS 15400 to the buyer, they just need to provide them with that information, like the Ford form does. The IRS form gets filed by the dealership, or they send in a spreadsheet, or a bunch of the Ford forms.

Rick.

You are correct on all points.



I posted to Marsha that she needs to CALL YOUR DEALER AND ASK THEM FOR THE FORM! Without the information from the dealer in writing and signed by the dealer there is a risk that one might not get the tax credit.

From the Inflation Reduction Act "IRA":
"Sellers/Dealers of clean vehicles are required to report the information below to the Internal Revenue Service (IRS) and to a buyer for a vehicle to be eligible for a clean vehicle credit under Internal Revenue Code section 30D or 25E"

As you stated, Ford uses their own form that satisfies the requirement that is in the IRA. Ford calls it their "Form 30D". A copy of Form 15400 also satisfies the requirement.

If the credit gets rejected at filing time or it triggers and IRS audit the buyer has the proof that the vehicle was eligible.

 

[eRock77]

I have a feeling I got screwed by my dealer on this EV credit deal. My purchase date was 1/6/24, which was actually a Ford shipping error--my truck was stuck in a marshalling yard in Detroit for a month, I should have had it 12/23. In any case, I asked for my "cash on the hood" credit, and was told my dealership had not opted in to that program. I was not even aware it was legal for them to not opt in, it seems the IRS and Ford are both encouraging dealers to do this but they are not actually required to do it. I was told I would have to file it with my taxes. My 2024 taxes, filed in 2025.

What I should have done was refuse delivery on the truck until they came up with my $7500, but I was weak and it had been two and a half years and I just didn't want to wait any longer. So I accepted delivery. I've written hate mail to the dealership management but frankly I don't think that's going anywhere. I'm just mystified that a dealer would not want to get people their credits as soon as humanly possible.

Do you guys have any suggestions on how I can get them to budge on that after the fact? Do I call my congressman? The local newspaper? Ford? Any advice could be hugely helpful.

 

[TaxmanHog]

In any case, I asked for my "cash on the hood" credit, and was told my dealership had not opted in to that program. I was not even aware it was legal for them to not opt in, it seems the IRS and Ford are both encouraging dealers to do this but they are not actually required to do it.

Participation is voluntary, the IRS can not mandate that every EV selling dealer be in the program, and even worse, there are dealers who want to be able to issue the credit upon purchase but can not because of business operational non-compliance with other tax matters, ie. they have financial problems that preclude their participation, [unfiled corporate or payroll tax returns, unresolved accounts receivables with the IRS, etc]

 

[Frankhpns]

I bought my Lightning from a dealer 1/30/2024, my out the door price included the POS federal rebate. The dealer assured me they would provide the IRS required “sales sheet” within 3 days.
It’s been a week and still no sheet. So we blew the 3 day IRS window.
The finance guy said they screwed up the online registration (I was the guinea pig for the 2024 rebate). He wanted to simply redo the paperwork, but couldn’t since I registered the truck and was no longer on temp plates. He was going to do some more legwork, and I’m waiting to hear back.
Without the sales sheet I don’t see how I can file using the POS workflow. I have no idea who is on the hook for the rebate in this situation. What I want to know is, should I just write them a check for the 7500 then make a claim on my 2024 return? Is there any way I’m going to get screwed here?

Went through 3 dealers to finally get a deal done. The dealer in Pensacola was clueless. The second dealer in Crestview FL was worse. The dealer in Tallahassee FL knew about the credit/rebate program and had the appropriate forms required. The bonus was he had the exact vehicle and color (Rapid Red). I was looking for (XLT 312A with a Max Trailer Tow Package, and the Tow Technology Package The transaction went very smoothly.

 

[hturnerfamily]

I have a feeling I got screwed by my dealer on this EV credit deal. My purchase date was 1/6/24, which was actually a Ford shipping error--my truck was stuck in a marshalling yard in Detroit for a month, I should have had it 12/23.

.... I was told I would have to file it with my taxes. My 2024 taxes, filed in 2025.

..... Any advice could be hugely helpful.

while I can feel your aggravation, I'm not sure I understand it.
You said that you originally was supposed to have the truck in hand back in December, when the 'old tax credit filed with your 2023 tax return' would have applied. You would file these in the next several months, if not already, to 'possible' be eligible for the tax credit.
You then said that 'Ford' had a shipping error. Ford does not ship any vehicles, transport companies do. If there is any delay in what the 'assumed' transport time and arrival is, Ford is not responsible for that - the transport company has sole responsibility until it is dropped off and signed for by the dealer. I see your frustration, as I had my OWN back in August '22 under similar circumstances. The truck just COULD NOT arrive soon enough! 18 months. Crazy.

So, you actually received the truck in 2024. You are now under the 'new' Tax Rebate at Time Of Sale rules, if eligible.
You are correct in that you did not 'have' to take the truck, that was totally up to you, but you are now in a 'different' Tax credit/rebate rule environment. While that is annoying, there's nothing the dealer could do about it, or Ford, either. You could blame the transport company, but that would get you nowhere. You just have to accept what it is.
As to 'why' the dealer either opts into, or doesn't opt into, the Tax Rebate at time of Sale is up to them, though we customers don't understand why they wouldn't. Maybe they have to be 'certified' or maybe they have not yet set up the 'automatic' transfer of funds from the IRS for these situations, yet, or maybe they just don't want to deal with the aggravation of 'waiting' on the IRS funds...who knows. Frustrating, yes.

What can you do to get the Tax Rebate 'now'? That's probably the real question you are asking, as you pointed out that otherwise you have to 'wait' until this time next year to 'get' that Rebate if you are subject to having to 'file' for this credit on your tax return..... Hmmm.

One option would have been to LEASE the truck, if the dealer had that option. Leases create a different environment for the Tax credit/rebate, as they are considered 'commercial' transactions, and DO get the full tax credit within the lease. I just did this on our new Kia EV9, on Feb 10th. The Tax Rebate was INCLUDED in the lease terms. I can turn around and buy out the Lease, today, and still retain that credit. So, my situation was one more of the car being built in Korea, and otherwise NOT eligible for the tax credit under 2024 requirements. Yours is different, even though the outcome may have been the same.


Did you actually DO your ownership/purchase paperwork BEFORE the end of 2023?
: claim the tax credit, under 2023 rules, on your 2023 tax return.
While you may hesitate since you only put your hands on it in early 2024, you might can make the argument, if it ever comes up, that you were SUPPOSED to receive your ordered vehicle well back at the end of 2023, but shipping problems held up the 'hands on' receipt.

Did you only actually make the purchase and paperwork and payment AFTER the truck arrived in 2024? You might just have to wait to get your credit next year. I'm not sure that your dealer could not redo the paperwork and still make it happen, even if they get 'certified' to operate the tax rebate, later, when they come to their senses. I would talk to the dealer OWNER and let them know your desires. Be firm, but be polite.

 

[flyct]

I have a feeling I got screwed by my dealer on this EV credit deal. My purchase date was 1/6/24, which was actually a Ford shipping error--my truck was stuck in a marshalling yard in Detroit for a month, I should have had it 12/23. In any case, I asked for my "cash on the hood" credit, and was told my dealership had not opted in to that program. I was not even aware it was legal for them to not opt in, it seems the IRS and Ford are both encouraging dealers to do this but they are not actually required to do it. I was told I would have to file it with my taxes. My 2024 taxes, filed in 2025.

What I should have done was refuse delivery on the truck until they came up with my $7500, but I was weak and it had been two and a half years and I just didn't want to wait any longer. So I accepted delivery. I've written hate mail to the dealership management but frankly I don't think that's going anywhere. I'm just mystified that a dealer would not want to get people their credits as soon as humanly possible.

Do you guys have any suggestions on how I can get them to budge on that after the fact? Do I call my congressman? The local newspaper? Ford? Any advice could be hugely helpful.

While in your case with your dealer you cannot get the “Point of Sale” credit you don't need to wait another 14 months to benefit from it. If you are employed, just change your fed tax withholding to zero until you recoup $7,500. That’s what I did several years when I purchased an EV that qualified at the beginning of a tax year in the past. It gives you a “Raise” in your paycheck every month instead of a big refund in April.

 

[TaxmanHog]

I discourage any manipulations the could be construed to be TAX FRAUD!

Adjustments to wage withholdings or quarterly estimated tax payments are legitimate reactions.

Backdating sale paperwork IS NOT!

 

[eRock77]

I discourage any manipulations the could be construed to be TAX FRAUD!

Adjustments to wage withholdings or quarterly estimated tax payments are legitimate reactions.

Backdating sale paperwork IS NOT!

I had not thought of that! Leave it to the Tax Man. That would solve my issue, I get to file on my 2023 return, and use my credit now. I'll see what they say. Good idea!

Sponsored