Form 8936 looks ready, but it is not computing a credit. Taxpayer's income is within limits and I've entered the required vehice information. What am I doing wrong?

[Just-Lisa-Now-]

I havent had anyone come in with an EV car yet and theres a lot of specific info to input for these, Im not sure I can just use a fake VIN to test it out.

Youre sure that vehicle is in the list that qualifies?  Check it by year and purchase date here  

https://fueleconomy.gov/feg/tax2023.shtml

[Shirley77]

They have the letter from the dealer.  Its a Chevy Bolt 

[Just-Lisa-Now-]

Im sure they give those out to anyone that buys an EV car, but delivery date matters and MSRP matters.

Id take a few minutes to look it up on that website, just to be sure.

[Shirley77]

Looks like it qualifies and I have entered the VIN correctly.  I'll call Intuit.

Thank you, Lisa.

[Just-Lisa-Now-]

lots of checkboxes on that form, some of them dont seem to act right for me....but Im not sure if its because the fake data Im entering is the problem or if the form is the problem.

Report back here if you figure out the problem, it might help someone else!

[Shirley77 · Accepted solution]

Intuit tech solved it.  You have to manually enter the expected credit in Part II line 9 of the worksheet.

[Shirley77]

You also have to put 0's in business percentage - line 10.

[Ryan Liu]

I got the same issue. I'm pretty sure that my client is qualified to claim $7,500 credit for his new Tesla Model Y, but like what you said, it was not computing even though I entered all the VIN details. I just followed your instructions to manually input the expected credit amount, it works. I don't think this Form-8936 is not ready as of now since on the one hand no red error box popped out, on the other hand, we have to manually input the credit amount based upon our own computation. There must be some coding errors behind the scene during the debug process.

[TaxGuyBill]

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@Ryan Liu wrote:

. I just followed your instructions to manually input the expected credit amount, it works.

I don't think this Form-8936 is not ready as of now since on the one hand no red error box popped out

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Yes, you need to manually input the tentative credit.  The program doesn't know what the vehicle qualifies for, so you need to enter that.

I agree, it should mark that box as a pink error once you start filling out the form.

[jofijohnjoseph]

Yes, you need to manually enter the credit.  While the taxpayer must meet the AGI requirements, the specific credit amount depends on the model/make, as the credit is based on a number of factors, including what percentage of the car parts were manufactured in the United States or an ally.  There is no way any tax software program, including ProSeries, can do these calculations, which is why the credit must be manually entered.

You can determine the credit amount for any vehicle by going to this link:

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

[Ryan Liu]

Yes, hopefully the ProSeries IT person can resolve this issue soon since Tesla Model Y has been sold out a lot in 2023. Many clients would be qualified for this $7,500.

[Ryan Liu]

😀Got it! Thanks for your reply!

[kh123]

The credit calculated on Form 8936 isn't flowing to Schedule 3.  Is there some magic trick to make that work correctly?

[Ryan Liu]

As long as the $7,500 credit amount shows on Line 13, Part III on Form-8936, then it should flow to Schedule-3. Mine is working fine.

[irinapinesfg]

Line 13, part III shows $7500, yet nothing flows to Sch-3 😞

[Shirley77]

Did you put zero on line 10?

[kh123]

I had zero on line 10.  I tried deleting and reentering the form information too.

[Just-Lisa-Now-]

Id delete the form and start over with a new one, sometimes the forms just get corrupt and don't work properly....or maybe your client doesnt qualify? 

[jofijohnjoseph]

You also need to check the "Yes" box on the very first question on the worksheet -- "Is this motor vehicle a new qualified vehicle with at least four wheels?"  It's easy to miss, as no error pops up if this question remains unanswered.

ProSeries frankly could have done a much better job with this form!

[irinapinesfg]

Thank you! It was exactly my problem - I've missed this check mark 🙂

[Ernie558]

Worked perfectly. I used the link provided, entered the vehicle info,then manually entered the credit amount on Form 8936 schedule A line 9 and nothing on line 10. Hit enter and the credit populated all the necessary forms and carried to schedule 3 then to the 1040.

Thanks for the info jofijohnjoseph!!

[LB56]

anyone know when this form will be EF Ready?

[Just-Lisa-Now-]

Works fine for me.  If you opened that client return and started completing that form earlier in the season, before an update last week I think? you may have to delete the form and start over for it to work right.

[LB56]

Thanks, but I put everything in already and the credit is showing, it's just at the top of the Form it says, in yellow, "Form 8936 not EF ready"?

[Just-Lisa-Now-]

Click the little X in the top right corner of that yellow bar and it will go away, the form is ready.

[LB56]

and thank you again!

[Millie2192]

I being having the same issue the amount of 7500 shows in red is this can be fixed?

[Shirley77]

Did you complete the worksheet Schedule A part 1 and part 2 checking the appliable boxes and did you enter 0 for business/investment use?  Have you done the update repair?  

[donnacampagna]

How did you get it to efile?  I did this then turned off error checking before efile and it came back rejected.

[Marlon D]

Here are two additional links that identify if the vehicle was manufactured or assembled in the U.S. which is one of the IRS requirements. The first two letters, numbers or combination of the VIN will identify the country where the vehicle was manufactured.  ProsSeries does not give an error but will not allow you to proceed if it identifies the vehicle as not being assembled in the U.S.  This happened with certain Tesla models a couple of years ago.  Not all makes/models of EVs will qualify. 

 https://www.checkvinfree.com/using-vin-to-decode-where-your-vehicle-is-made/

https://afdc.energy.gov/laws/electric-vehicles-for-tax-credit?vin=YV4ED3GK8P2061465#vin-decoder

[Marlon D]

One more VIN validation link.  Keep in mind that ProSeries automatically validates the VIN with the DOT.  They really should provide an error w/ explanation for form 8936/8936-A which would eliminate calls and guesswork.

https://vpic.nhtsa.dot.gov/decoder/Decoder

[Just-Lisa-Now-]

" Keep in mind that ProSeries automatically validates the VIN with the DOT"

I doubt Intuit has this ability, but Im guessing IRS does.

[Marlon D]

It'll give you that message if you put in an incorrect VIN and right click on the box when it turns pink.  Sort of like validating birthdates with the SSA.

[Just-Lisa-Now-]

probably the formatting of letters vs numbers

[Tpham]

I have the same problem. Have you already solved it?

[Shirley77]

Yes - You'll find several helpful answers in the thread after my original post.