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Filing Form 8936 and calculating plug-in electric drive vehicle credits in ProSeries

SOLVEDby Intuit63Updated 4 days ago

 

NOTE: Changes made to Form 8936 for TY23 include:

  • A new clean vehicle credit for new electric vehicles meeting specific requirements
  • A credit for previously owned clean vehicles
  • A credit for qualified commercial clean vehicles

Tax-exempt and governmental entities may also elect to treat their credits as a payment of income tax. However, credit for plug-in electric-drive motor vehicles is no longer available for vehicles placed in service after 2022 and final assembly of the vehicle must occur within North America for vehicles purchased after August 16, 2022. See here for more details.

To generate Form 8936 in tax year 2023:

  1. Open the tax return.
  2. Press F6 to bring up Open Forms.
  3. Type 8936A to highlight the Form 8936-A and click OK.
  4. On the Create new copy line enter the description of the vehicle and select Create.
    • Once you complete the 8936-A for the first vehicle, you can select the QuickZoom to another Qualified Plug-in Electric Drive Motor Vehicle Credit Worksheet at the top of the 8936-A to add another vehicle.
  5. Check the I certify the VIN number is correct checkbox at the top of the form.
  6. Complete the Vehicle Detail Information Smart Worksheet.
  7. Complete Part I through Part V as needed.

To generate Form 8936 in tax year 2022 and prior:

  1. Open the tax return.
  2. Press F6 to bring up Open Forms.
  3. Type 8936W to highlight the Form 8936 Wks and click OK.
  4. On the Create New Copy line enter the description of the vehicle and select Create.
  5. 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

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