To generate Form 8936:
- Open the tax return.
- Press F6 to bring up Open Forms.
- Type 8936W to highlight the Form 8936 Wks and click OK.
- On the Create New Copy line enter the description of the vehicle and select Create.
- In Part I, Part II, Part III and Part IV enter the information about the vehicle.
When filing Form 8936, your client thought their plug-in electric vehicle qualified for a $7,500 credit, but the program is calculating a lesser amount.
How ProSeries calculates electric vehicle credits
Here's a breakdown of how the program calculates electric vehicle credits:
The credit's current value of $2,500
- Plus $417 (if the battery stores at least 5 Kilowatt hours (KWh))
- Plus $417 for each KWh exceeding 5 KWhs
= your total vehicle credit.
For example, a car with a 10 KWh battery would be eligible for a credit of $5,002.
The credit limit is reduced for two- and three-wheel vehicles. If the vehicle is a four-wheel vehicle, make sure you have the correct type of vehicle shown in Part I of the Form 8936 Worksheet.
For more information about Form 8936, see About Form 8936, Qualified Plug-In Electric Drive Motor Vehicle Credit.
You can find tentative credit amounts at Plug-In Electric Drive Vehicle Credit.