To apply the Used Clean Vehicle Credit (EV Credit) in TaxWise, follow these steps:
After adding Form 8936, enter the vehicle information in Part I of the form. Note: The Vehicle Identification Number (VIN) is required to claim this credit.
Answer Question 4a. Indicate whether the credit was transferred to the dealer at the time of purchase. Generally this is no.
Here, you will select whether the clean vehicle was purchased as new, used, or a commercial vehicle. In this example, we will do preowned.
Select Yes for Question 6 if the vehicle is a preowned electric vehicle (EV).
Click 8936 A Pg 2.
Answer Question 13a: Did the taxpayer resell the vehicle within 30 days of purchase?
Answer Question 13d: Has the taxpayer claimed this credit for a clean vehicle purchased within the 3-year period prior to this purchase?
Answer Question 13e: Was the sales price of the vehicle more than $25,000?
Click on the element.
Enter the sale price of the vehicle on Line 14 as listed on the purchase agreement or invoice.
Additional Notes:
No Carryforward: The used EV credit is non-refundable and cannot be carried forward. If the credit is more than the tax liability, the excess amount is lost.
Must Purchase from a Dealer: Private party sales do not qualify.
You can also view the video tutorial here:
How to Claim the Clean Vehicle or Electric Vehicle Credit for a Preowned Vehicle