Dealer EV tax credit experience

[scottlanger]

Just wondering what others experience regarding EV tax credit at dealership has been, from what I can see online dealer should have gone through an online reporting process or provided me a report with various vehicle information. My dealer is telling me they submit info to IRS and that I need to contact a CPA because I need to file something within 6 months of purchase. I don't normally use a CPA because my taxes are pretty simple but before I shell out money for a CPA has others experience been like mine or filling out form online at time of purchase?

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[JRT]

I report it when I fill my return, it is a reduction to your taxes owed. I user H&R Block Software myself for 20 years

 

[The Weatherman]

My understanding is the same as. @JRT. My dealer submitted the required info on their end to the IRS and provided a document that my tax preparer will use in filling my taxes.

 

[scottlanger]

My understanding is the same as. @JRT. My dealer submitted the required info on their end to the IRS and provided a document that my tax preparer will use in filling my taxes.

This is my fear my dealer did not provide me any documentation and doesn't seem to think they do, perhaps I will download the tax form I need to submit and read through and then reapproach dealer

 

[Monkey]

Dealerships don't need to supply any special or specific information to the IRS. You will submit the necessary information when you file your federal tax return. Meaning your return for 2023, if you purchased the truck in 2023. Now as for state EV incentives, some states do require the dealership to submit state level stuff, but most require the purchaser to fill out the necessary form and supply specific information.. The state taxing agency can reference their motor vehicle registrations to apply any state incentive. Your relevant state web site will have the appropriate tax form, or if you use TurboTax or similar tax software, it will handle that aspect for you and print anything extra you need.

Beginning in January '24, the federal rebate becomes a point-of-sale incentive. Some states are following suit and allowing their incentives to be claimed at time of purchase as well.

 

[MillieChliette]

You're worried about nothing.

Put the VIN in when you do your taxes next year. Return REFUND amount goes up by $7500, or by your federal tax liability if it was less than $7500. Done. Dealer doesn't supply you with forms.

 

[Bigisland Guy]

MC is correct, if you file online with software such as Turbo Tax, H & R or the IRS direct you simply put in your VIN#. This is what I did for our 2022 filings and no issues obtaining the tax credit for a purchaser. That being said a lease in which the dealership takes the credit instead of the leaser may have various paperwork. (I had that happen to me while leasing EV's that had tax credits from Hyundai). If you a purchaser then don't sweat it. Enjoy your truck!

 

[TaxmanHog]

The following will be effective for sales 1/1/2024 and beyond.

Clean vehicle credits can help car buyers pay less at the dealership​

Taxpayers who buy a qualifying new or used clean vehicle may be able to transfer their tax credits to the dealer in exchange for a financial benefit – such as a lower cost – starting Jan. 1, 2024.

Benefits of transferring the credit
Taxpayers can now claim tax credits for new and used clean vehicles they buy during the tax year and, starting Jan. 1, 2024, can transfer that credit to the dealership. This means that the taxpayer who is buying the vehicle can exchange their credit for a financial benefit such as reduced final cost. The financial benefit is equal to the amount of the credit, whether in cash, a partial payment or a down payment.

New information about the clean vehicle credit
The IRS recently issued proposed regulations, Revenue Procedure 2023-33 and frequently asked questions that cover:

• How taxpayers can transfer clean vehicle credits to eligible dealers.
• How dealers can register with IRS Energy Credits Online to receive advance payments.
• How dealers can lose their registration if they don’t comply with the program's requirements.
• New details on the timing and submission of seller reports.
• Updated information for manufacturers on becoming qualified and how qualified manufacturers can submit monthly reports.

Dealers and sellers register by December 1
Dealers and sellers of clean vehicles should register their organizations immediately using the Energy Credits Online tool. The IRS strongly urges sellers of clean vehicles to register by Dec. 1, 2023, to receive advance payments starting Jan. 1, 2024.

For updated clean vehicle credit frequently asked questions related to new, previously owned and qualified commercial clean vehicles, see Fact Sheet 2023-22.

More information:
Clean Vehicle Credits webpage on IRS.gov

https://www.irs.gov/newsroom/clean-vehicle-credits-can-help-car-buyers-pay-less-at-the-dealership

 

[TaxmanHog]

This is my fear my dealer did not provide me any documentation and doesn't seem to think they do, perhaps I will download the tax form I need to submit and read through and then reapproach dealer

If you use an online filing service, their interview process might touch upon whether you bought a clean vehicle and secure the relevant, your trucks VIN and purchase date, from that point the preparation software will do all the figuring and generate the appropriate forms for e-file, or printing and snailmail filing, I highly encourage you EFILE.

 

[flyct]

I’ve been using taxact.com for years. The software completes the proper form 8936 and efiles . I’ve claimed the $7,500 tax credit 5 times since 2015 and will claim it twice this 2023 tax year.

 

[RickLightning]

Dealerships don't need to supply any special or specific information to the IRS. You will submit the necessary information when you file your federal tax return. Meaning your return for 2023, if you purchased the truck in 2023. Now as for state EV incentives, some states do require the dealership to submit state level stuff, but most require the purchaser to fill out the necessary form and supply specific information.. The state taxing agency can reference their motor vehicle registrations to apply any state incentive. Your relevant state web site will have the appropriate tax form, or if you use TurboTax or similar tax software, it will handle that aspect for you and print anything extra you need.

Beginning in January '24, the federal rebate becomes a point-of-sale incentive. Some states are following suit and allowing their incentives to be claimed at time of purchase as well.

This is not correct. The dealership is required to fill out a form, supply it to the buyer, and file. The customer uses this information when they file, but don't send the form in.

Sellers of vehicles that are eligible for a new clean vehicle credit under IRC 30D must furnish a report to the buyer at the time of sale and then to IRS for those vehicles to be eligible for a credit under IRC 30D.

Report Information to Buyers
You must provide the following information to buyers at the time of sale:

Seller/Dealer name and taxpayer ID number
Buyer's name and taxpayer ID number
Maximum credit allowable under IRC 30D for new vehicles or IRC 25E for previously owned vehicles
Vehicle identification number (VIN), unless the vehicle is not assigned one
Battery capacity
Date of sale
Sale price
For new vehicles, verification that the buyer is the original user
Each report must include a declaration of accuracy signed by a representative of your business with binding authority. The declaration must read: "Under penalties of perjury, I declare that I have examined this report submitted to the IRS pursuant to Revenue Procedure 2022-42 by [insert name of Seller], and to the best of my knowledge and belief I certify that this report is true, correct, and complete.”

https://www.irs.gov/credits-deductions/clean-vehicle-credit-seller-or-dealer-requirements

 

[flyct]

This is not correct. The dealership is required to fill out a form, supply it to the buyer, and file. The customer uses this information when they file, but don't send the form in.

Sellers of vehicles that are eligible for a new clean vehicle credit under IRC 30D must furnish a report to the buyer at the time of sale and then to IRS for those vehicles to be eligible for a credit under IRC 30D.

Report Information to Buyers
You must provide the following information to buyers at the time of sale:

Seller/Dealer name and taxpayer ID number
Buyer's name and taxpayer ID number
Maximum credit allowable under IRC 30D for new vehicles or IRC 25E for previously owned vehicles
Vehicle identification number (VIN), unless the vehicle is not assigned one
Battery capacity
Date of sale
Sale price
For new vehicles, verification that the buyer is the original user
Each report must include a declaration of accuracy signed by a representative of your business with binding authority. The declaration must read: "Under penalties of perjury, I declare that I have examined this report submitted to the IRS pursuant to Revenue Procedure 2022-42 by [insert name of Seller], and to the best of my knowledge and belief I certify that this report is true, correct, and complete.”

https://www.irs.gov/credits-deductions/clean-vehicle-credit-seller-or-dealer-requirements

I’m curious how many buyers have received this document? I bought a Tesla and a Lightning this year that qualifies for the tax credit and I didn’t receive anything like this from either sale.

 

[scottlanger]

I’m curious how many buyers have received this document? I bought a Tesla and a Lightning this year that qualifies for the tax credit and I didn’t receive anything like this from either sale.

This is why I was concerned, I had read that, sounds like lots of people in the same boat so probably okay I guess, glad to hear it appears to be widespread dealers are not providing this information.

 

[flyct]

I’m curious how many buyers have received this document? I bought a Tesla and a Lightning this year that qualifies for the tax credit and I didn’t receive anything like this from either sale.

I started a new thread to see who got the info from dealers and who didn’t.

 

[chl]

Just wondering what others experience regarding EV tax credit at dealership has been, from what I can see online dealer should have gone through an online reporting process or provided me a report with various vehicle information. My dealer is telling me they submit info to IRS and that I need to contact a CPA because I need to file something within 6 months of purchase. I don't normally use a CPA because my taxes are pretty simple but before I shell out money for a CPA has others experience been like mine or filling out form online at time of purchase?

My dealership signed up as soon as I alerted them that the IRS portal had opened - they even thanked me for telling them about it! Ourisman Ford Alexandria VA.

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