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Claimimg plug-in electric vehicle tax credit

Posted: Fri Feb 14, 2020 6:32 am
by runner9
In July I bought a 2020 Prius Prime Plug-In Hybrid. Toyota, both then and now, claims it qualifies for up to a $4,500 tax credit. (https://www.toyota.com/priusprime/calculator/

I'm filling my taxes using H&R Block online. For one, it lists model years in a drop down and 2020 isn't an option. More importantly, it states ""The vehicle's manufacturer or distributor will be able to give you a copy of the IRS letter certifying: -Your vehicle's eligibility for the credit -The credit amount"

I called the out of state dealer I used. After a few back and forth calls (they clearly had no idea what I was looking for) they send me a blank IRS Form 8936. This is obviously not proof of anything.

Should I call the dealer back? Should I call Toyota directly? Just print some of the literature from their website showing it's eligible and call it a day? Am I looking for something I can find online, a generic communication between Toyota and the IRS?

Thanks!

Re: Claimimg plug-in electric vehicle tax credit

Posted: Fri Feb 14, 2020 7:00 am
by aristotelian
I would give it a shot with Turbotax or FreetaxUSA. I just filed for mine although it was a 2018 model. The form is finally available.

You do not need certification letter. The instructions say that the manufacturer is supposed to have certified to the IRS that the car qualifies. I would assume this has been done if your car is advertised as qualifying.

2020 is a dropdown option in TurboTax Deluxe Download (Mac).

Re: Claimimg plug-in electric vehicle tax credit

Posted: Fri Feb 14, 2020 7:20 am
by retiredjg
I think this is one of those tax credits that was extended at the last minute in 2019. That may be why 2020 cars are not listed - without the last minute extension, 2020 cars would not have been eligible.

Wait a little and try again. Contact H&R online and ask for help. Or try different software.

Re: Claimimg plug-in electric vehicle tax credit

Posted: Fri Feb 14, 2020 9:17 am
by stuyguy
I too bought a 2020 Prime last year. Yesterday's TurboTax update included form 8936. Input the VIN, model/make, dates of purchase and first use, GVW, and battery size, and TT correctly calculated the $4502 credit. No IRS cert letter needed. Efiled successfully. (Same procedure as for my 2017 Prime)

Re: Claimimg plug-in electric vehicle tax credit

Posted: Fri Feb 14, 2020 10:46 am
by alpenglow
Not to hijack this thread, but is it credit dead as of the end of 2019? Too bad I seem to have missed this one. :oops:

Re: Claimimg plug-in electric vehicle tax credit

Posted: Fri Feb 14, 2020 10:52 am
by TBillT
alpenglow wrote:
Fri Feb 14, 2020 10:46 am
Not to hijack this thread, but is it credit dead as of the end of 2019? Too bad I seem to have missed this one. :oops:
Not dead for Toyota!
You might be confused that there is a 200,000 sales limit per manufacturer that Tesla and GM have reached, so now they are in the phase out period with partial credit.

Also be sure to check your state plug-in deduction.
I am not up to date in how close Toyota is to 200,000.
Toyota RAV4 plug-in coming soon and looks like it might be a popular vehicle.

Re: Claimimg plug-in electric vehicle tax credit

Posted: Fri Feb 14, 2020 10:58 am
by orangeandwhite
runner9 wrote:
Fri Feb 14, 2020 6:32 am
In July I bought a 2020 Prius Prime Plug-In Hybrid. Toyota, both then and now, claims it qualifies for up to a $4,500 tax credit. (https://www.toyota.com/priusprime/calculator/

I'm filling my taxes using H&R Block online. For one, it lists model years in a drop down and 2020 isn't an option. More importantly, it states ""The vehicle's manufacturer or distributor will be able to give you a copy of the IRS letter certifying: -Your vehicle's eligibility for the credit -The credit amount"

I called the out of state dealer I used. After a few back and forth calls (they clearly had no idea what I was looking for) they send me a blank IRS Form 8936. This is obviously not proof of anything.

Should I call the dealer back? Should I call Toyota directly? Just print some of the literature from their website showing it's eligible and call it a day? Am I looking for something I can find online, a generic communication between Toyota and the IRS?

Thanks!
You’re making this too complicated. You don’t need any special letter or material from Toyota or the dealer. You just enter the model, VIN and the date of purchase on the form. That’s it. If you get audited you can send the bill of sale that shows you bought the car new.

The credit amount is on the IRS website for your model and the software should know it as well.

The model year issue is a bug in the tax software. Have them fix it or use TurboTax.

The credit is still good and is still good for the Prime.

Re: Claimimg plug-in electric vehicle tax credit

Posted: Fri Feb 14, 2020 11:12 am
by retiredjg
alpenglow wrote:
Fri Feb 14, 2020 10:46 am
Not to hijack this thread, but is it credit dead as of the end of 2019? Too bad I seem to have missed this one. :oops:
The credit expired at the end of 2018. At the end of 2019, "they" (I assume Congress) extended it at the very last minute to include 2019. This was along with a few dozen other things that had expired.

The one that made the news was extending the medical deduction of anything over 7.5% of your AGI. It was supposed to have gone back to 10% for 2019, but they extended it instead.

Nobody knows what "they" will do next year.

Re: Claimimg plug-in electric vehicle tax credit

Posted: Fri Feb 14, 2020 12:47 pm
by alpenglow
orangeandwhite wrote:
Fri Feb 14, 2020 10:58 am

The credit is still good and is still good for the Prime.
Thanks. I must have been living in a cave to have missed this offer. Prime gets $4502 from the Fed and $1100 from NYS it seems. Plus, I've been selling back solar power at a pathetic rate that could be more or less free "gas". :beer

Re: Claimimg plug-in electric vehicle tax credit

Posted: Fri Feb 14, 2020 12:52 pm
by stuyguy
alpenglow wrote:
Fri Feb 14, 2020 12:47 pm

Thanks. I must have been living in a cave to have missed this offer. Prime gets $4502 from the Fed and $1100 from NYS it seems. Plus, I've been selling back solar power at a pathetic rate that could be more or less free "gas". :beer
Toyota also has a rebate of $3000 on Primes for NY, and much of the northeast, until early March

Re: Claimimg plug-in electric vehicle tax credit

Posted: Fri Feb 14, 2020 12:53 pm
by alpenglow
stuyguy wrote:
Fri Feb 14, 2020 12:52 pm
alpenglow wrote:
Fri Feb 14, 2020 12:47 pm

Thanks. I must have been living in a cave to have missed this offer. Prime gets $4502 from the Fed and $1100 from NYS it seems. Plus, I've been selling back solar power at a pathetic rate that could be more or less free "gas". :beer
Toyota also has a rebate of $3000 on Primes for NY, and much of the northeast, until early March
Hmm - I guess I know what I'll be doing next week. Thanks.

Re: Claimimg plug-in electric vehicle tax credit

Posted: Fri Feb 14, 2020 1:19 pm
by TBillT
retiredjg wrote:
Fri Feb 14, 2020 11:12 am
alpenglow wrote:
Fri Feb 14, 2020 10:46 am
Not to hijack this thread, but is it credit dead as of the end of 2019? Too bad I seem to have missed this one. :oops:
The credit expired at the end of 2018. At the end of 2019, "they" (I assume Congress) extended it at the very last minute to include 2019. This was along with a few dozen other things that had expired.

The one that made the news was extending the medical deduction of anything over 7.5% of your AGI. It was supposed to have gone back to 10% for 2019, but they extended it instead.

Nobody knows what "they" will do next year.
I am not aware of any expiration date for the Fed rebates.
Manufacturers have since 2012 been entitled to sell 200,000 plug-ins each with Fed credits, and then go to credit phase out period.
Yes there is some paranoia that Congress might end the program, but I do not see that as likely outcome. I am guessing most manufacturers will be able to sell their full 200,000 vehicles. Tesla and GM have already done so, and are in phase out period.

Re: Claimimg plug-in electric vehicle tax credit

Posted: Fri Feb 14, 2020 5:09 pm
by retiredjg
TBillT wrote:
Fri Feb 14, 2020 1:19 pm
retiredjg wrote:
Fri Feb 14, 2020 11:12 am
alpenglow wrote:
Fri Feb 14, 2020 10:46 am
Not to hijack this thread, but is it credit dead as of the end of 2019? Too bad I seem to have missed this one. :oops:
The credit expired at the end of 2018. At the end of 2019, "they" (I assume Congress) extended it at the very last minute to include 2019. This was along with a few dozen other things that had expired.

The one that made the news was extending the medical deduction of anything over 7.5% of your AGI. It was supposed to have gone back to 10% for 2019, but they extended it instead.

Nobody knows what "they" will do next year.
I am not aware of any expiration date for the Fed rebates.
Manufacturers have since 2012 been entitled to sell 200,000 plug-ins each with Fed credits, and then go to credit phase out period.
Yes there is some paranoia that Congress might end the program, but I do not see that as likely outcome. I am guessing most manufacturers will be able to sell their full 200,000 vehicles. Tesla and GM have already done so, and are in phase out period.
It is possible we are talking about two different things. I'm talking about tax credits. You seem to be talking about rebates. I'm guessing these are two completely different programs.

I believe what I said is correct about tax credits, but maybe not. I have no idea if or how rebates are being handled. However, it would surprise me if rebates are handled through tax filings. Tax credits are.

Re: Claimimg plug-in electric vehicle tax credit

Posted: Fri Feb 14, 2020 6:27 pm
by runner9
OP here. Thank you all. I printed the fueleconomy.gov page with the credit listed. I know 2020 wasn't listed on H& R Block as an option yesterday but it is this evening. So, I'm all set and will claim the $4,502 credit. Thanks again!

Re: Claimimg plug-in electric vehicle tax credit

Posted: Fri Feb 14, 2020 6:35 pm
by TravelGeek
TBillT wrote:
Fri Feb 14, 2020 1:19 pm

I am not aware of any expiration date for the Fed rebates.
Manufacturers have since 2012 been entitled to sell 200,000 plug-ins each with Fed credits, and then go to credit phase out period.
Yes there is some paranoia that Congress might end the program, but I do not see that as likely outcome. I am guessing most manufacturers will be able to sell their full 200,000 vehicles. Tesla and GM have already done so, and are in phase out period.
Right, no expiration date. The fight in Congress at the end of 2019 was about extending the tax credit to 600,000 vehicles per manufacturer (from 200k) before the phaseout kicks in.

The Prime 2020 is still eligible since Toyota hasn't reached the limit. Tesla and GM have reached the 200,000 limit.

https://www.fueleconomy.gov/feg/taxevb.shtml

https://www.forbes.com/sites/greggardne ... tax-credit

Re: Claimimg plug-in electric vehicle tax credit

Posted: Sun Mar 01, 2020 1:41 pm
by TBillT
retiredjg wrote:
Fri Feb 14, 2020 5:09 pm
TBillT wrote:
Fri Feb 14, 2020 1:19 pm
retiredjg wrote:
Fri Feb 14, 2020 11:12 am
alpenglow wrote:
Fri Feb 14, 2020 10:46 am
Not to hijack this thread, but is it credit dead as of the end of 2019? Too bad I seem to have missed this one. :oops:
The credit expired at the end of 2018. At the end of 2019, "they" (I assume Congress) extended it at the very last minute to include 2019. This was along with a few dozen other things that had expired.

The one that made the news was extending the medical deduction of anything over 7.5% of your AGI. It was supposed to have gone back to 10% for 2019, but they extended it instead.

Nobody knows what "they" will do next year.
I am not aware of any expiration date for the Fed rebates.
Manufacturers have since 2012 been entitled to sell 200,000 plug-ins each with Fed credits, and then go to credit phase out period.
Yes there is some paranoia that Congress might end the program, but I do not see that as likely outcome. I am guessing most manufacturers will be able to sell their full 200,000 vehicles. Tesla and GM have already done so, and are in phase out period.
It is possible we are talking about two different things. I'm talking about tax credits. You seem to be talking about rebates. I'm guessing these are two completely different programs.

I believe what I said is correct about tax credits, but maybe not. I have no idea if or how rebates are being handled. However, it would surprise me if rebates are handled through tax filings. Tax credits are.
Sloppy wording on my part, sorry, the Federal program is TAX Credits, so you do have to owe IRS some taxes to take advantage of the credit. But there is no deadline to the program except as it pertains to manufacturers who have hit their 200,000 vehicle sales limits. Those manufacturers who have hit the sales limit then go into a phase out period with defined time deadlines.

Re: Claimimg plug-in electric vehicle tax credit

Posted: Sun Mar 08, 2020 5:49 pm
by Strider
My Toyota dealer told me that a copy of the bill of sale for my 2020 Toyota Prius Prime should be appended to my return when filing IRS Form 8936, but I find nothing in the tax packet instructions to indicate such.

What is correct in this regard?

Strider

Re: Claimimg plug-in electric vehicle tax credit

Posted: Sun Mar 08, 2020 5:53 pm
by aristotelian
Strider wrote:
Sun Mar 08, 2020 5:49 pm
My Toyota dealer told me that a copy of the bill of sale for my 2020 Toyota Prius Prime should be appended to my return when filing IRS Form 8936, but I find nothing in the tax packet instructions to indicate such.

What is correct in this regard?

Strider
All you need is the VIN.