EV Tax credit and Tax Software.

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I've read that it has been missing in their consumer apps for years, and the form has not been incorporated into the current version (in spite of numerous complaints). You either have to manually override, which means no efile, or efile and then mail an amendment later.
 
Just filed my taxes with TurboTax online. I was able to find the area to claim the purchase of the vehicle and the charger and installation. I got the full credit for the vehicle but nothing for the charger/install. Does anyone know if there was a minimum amount you needed to claim to get credit for that?
 
LaurieS said:
I was able to find the area to claim the purchase of the vehicle and the charger and installation. I got the full credit for the vehicle but nothing for the charger/install. Does anyone know if there was a minimum amount you needed to claim to get credit for that?
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There is a maximum credit you can get for the charger, but I'm not aware of a minimum. It is completely separate from the EV credit, and called "Alternative Fuel Vehicle Refueling Property Credit", Form 8911.

If you have enough tax burden to claim the EV purchase credit, you should qualify for the charger as well...unless the EV tax credit completely offset your burden so you didn't qualify for more credits?
 
I did complete the info for the 8911. I was only claiming $1200. I know our tax liability wasn’t as much as the $7500 so maybe that had something to do with it? All I know is I’ll have $6K to put towards the Loan on the SE so that’s all that really matters in my eyes. It would have been nice to have a bit more but I’m not complaining.
 
LaurieS said:
I did complete the info for the 8911. I was only claiming $1200. I know our tax liability wasn’t as much as the $7500 so maybe that had something to do with it? All I know is I’ll have $6K to put towards the Loan on the SE so that’s all that really matters in my eyes. It would have been nice to have a bit more but I’m not complaining.
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I believe you still have time to convert traditional IRA dollars to Roth IRAs to get to $7,500 tax owed. Then you never have to pay the tax on the IRA money your federal EV tax credit frees up.
 
I have done my first draft of my taxes using Turbo Tax. I had to manually go into the forms for the car and charging equipment (meaning, it didn't automatically ask any questions that brought up that subject--had to go into the Advanced tax credit area to find them). During the "review", the program said that the form for the charger was not yet finalized so the taxes could not be filed yet. I think it said Feb 11 or something like that.

Rob
 
insightman said:
I believe you still have time to convert traditional IRA dollars to Roth IRAs to get to $7,500 tax owed. Then you never have to pay the tax on the IRA money your federal EV tax credit frees up.
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I looked into this and I’m not so sure. I think the deadline for a conversion was 12/31. You can still contribute but I don’t think you can convert.

I’m not a tax professional, just trying to read and understand the law.


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LaurieS said:
I did complete the info for the 8911. I was only claiming $1200. I know our tax liability wasn’t as much as the $7500 so maybe that had something to do with it? All I know is I’ll have $6K to put towards the Loan on the SE so that’s all that really matters in my eyes. It would have been nice to have a bit more but I’m not complaining.
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Yeah these are both credits on taxes you owe, not expenditures you get a cash reimbursement for. So if you only owe $6K you won't get a credit of more than $6K even if you have multiple credits that add up more than that. You should get max credit if you owed more than $8500 in taxes ($7500 plus $1000), plus whatever other credits you qualify for.

When I did a trial run of the turbotax app, both the EV credit and fuel credit were listed as possible credits. They may have been on different pages, but they were both there.

The personal problem I have is that Massachusetts always rejects or corrects my non-resident turbotax generated returns but HR Block returns are accurate. I got extra work regardless.
 
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GetOffYourGas said:
I looked into this and I’m not so sure. I think the deadline for a conversion was 12/31. You can still contribute but I don’t think you can convert.

I’m not a tax professional, just trying to read and understand the law.


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I don't even do my own taxes, but I'm pretty sure the Roth conversion for our SE purchased in 2020 took place in 2021. I believe it's called a "back-door Roth conversion," and the Build Back Better bill was supposed to end that loophole.
 
insightman said:
I don't even do my own taxes, but I'm pretty sure the Roth conversion for our SE purchased in 2020 took place in 2021. I believe it's called a "back-door Roth conversion," and the Build Back Better bill was supposed to end that loophole.
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Yes, that’s the loophole I’m referring to. Good news if it was done in 2021 for your 2020 return. I bought in 2021 and am looking at possibly missing out on some of the $7500 credit. I am trying to figure out if I still have time. My reading of the tax law was that I did not. Time to find a tax expert.


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GetOffYourGas said:
Yes, that’s the loophole I’m referring to. Good news if it was done in 2021 for your 2020 return. I bought in 2021 and am looking at possibly missing out on some of the $7500 credit. I am trying to figure out if I still have time. My reading of the tax law was that I did not. Time to find a tax expert.


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@GetOffYourGas
Did you figure this out? As far as I understand tax law, IRA conversions are only reported during calendar year (conversion today would report in 2022, not 2021).
 
I guess the question I ultimately have is there any way to increase federal taxes last minute during Jan 1 - April 15 period following the tax year ?
Not many tax accountants working on Saturday’s.
 
Urbanengineer said:
@GetOffYourGas
Did you figure this out? As far as I understand tax law, IRA conversions are only reported during calendar year (conversion today would report in 2022, not 2021).
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The article I linked states: "Many who do Back-Door ROTH conversions typically wait until they are close to the April tax-filing deadline." If it wasn't available after the end of the tax year, why would it be called a "Back-Door" conversion? Of course, it could be nullified if a couple of Democrat senators change their hard-held "no" votes on Biden's Build Back Better" bill.
 
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