[swoodard]

I submitted a request for a $7400 tax credit in my federal tax return. This was based on the kilowatt hours on the battery. This information was provided by the Volt advisor from OnStar. The IRS reduced my tax credit to $4500.
I assumed that everyone would get the full $7500 tax credit (assuming they paid at least this much in federal taxes.) Am I missing something when it comes to the tax credit?

 

[Paulacton84]

I submitted a request for a $7400 tax credit in my federal tax return. This was based on the kilowatt hours on the battery. This information was provided by the Volt advisor from OnStar. The IRS reduced my tax credit to $4500.
I assumed that everyone would get the full $7500 tax credit (assuming they paid at least this much in federal taxes.) Am I missing something when it comes to the tax credit?

I don't know, and you have not told us what they said, but there are a couple of forum members with long stories and multiple detailed threads on how this happened to them and how they are combating it. The 2 chief causes of this sort of IRS ruling (again this is 4th hand from my reading of those threads) seem to be AMT issues and Schedule C usage. In one case the car was not the Schedule C partial business usage vehicle, but was treated as if it was..... I suggest you search for and read those threads in detail, and then start your, unfortunately lengthy, appeal process... might be a good time to bring in a tax advisor....

it is my understanding, again I am NOT highly knowledgeable on this subject, that the wording of the tax credit law makes it clear that the credit should be after all AMT calculations, are taken into account, but that some IRS staffers are not interpreting it that way, citing some other wording in some other section of the tax code....

if that isn't murky enough, the schedule C issues threads read like sections of Catch-22, It seems that if your Volt is business owned, or partially amortized as a business expense, or even not depreciated, but only charged of as a per mile deduction, that some interpret one of these conditions as changing the tax credit value.... how I have no idea.
good luck

 

[crowltom]

Hello
I also did not get the full $7,500.00 credit. My problem was I had some other deductions.
The amount of total tax owed was less then my total deductions. I could look at it as I used the full amount from my Volt and only some of the other stuff I had.
Just remember you make so much money, you owe some much tax on it and can only use the same amount of deductions or so

 

[danvolt]

I don't know, and you have not told us what they said, but there are a couple of forum members with long stories and multiple detailed threads on how this happened to them and how they are combating it. The 2 chief causes of this sort of IRS ruling (again this is 4th hand from my reading of those threads) seem to be AMT issues and Schedule C usage. In one case the car was not the Schedule C partial business usage vehicle, but was treated as if it was..... I suggest you search for and read those threads in detail, and then start your, unfortunately lengthy, appeal process... might be a good time to bring in a tax advisor....

it is my understanding, again I am NOT highly knowledgeable on this subject, that the wording of the tax credit law makes it clear that the credit should be after all AMT calculations, are taken into account, but that some IRS staffers are not interpreting it that way, citing some other wording in some other section of the tax code....

if that isn't murky enough, the schedule C issues threads read like sections of Catch-22, It seems that if your Volt is business owned, or partially amortized as a business expense, or even not depreciated, but only charged of as a per mile deduction, that some interpret one of these conditions as changing the tax credit value.... how I have no idea.
good luck

By all means, search the forum and read the threads on this...some pretty recent. In my case, IRS wrongly stated that I had filed this as a business credit (no, no, no my friends at IRS...I had the proper form filed for the volt tax credit - forget the number of the form off the top of my head,-, something 86_ _ I believe). BUT, I called the number on the website ("WHERE'S MY REFUND") before I received official notification of their error in the mail, which is a big waste of my time. I had to wait to get the official notice by snail mail as to what the problem was. THEN I called the phone number on that document and told them what I believed they had messed up. OKAY, now sit down for this: the guy took the info over the phone, said he would correct it, and that I should see the refund within 4 weeks. OMG it came true! I never sent anything through the mail to them, never made another call, and did not have to endure the frustrations. So, if your case is like mine, don't give up all hope yet.

 

[gsepelak]

I received the full 7500 credit. Did you file both form 6251 (Alternative Minimum Tax - Individuals) in addition to form 8936 (Qualified Plug-in Electric Motor Vehicle Credit)? You must file form 6251 to even though you are not impacted by the AMT to show the IRS that you are not affected.

 

[Elemental]

Wow, the IRS sure makes things confusing.


I bet it will be better when they make sure you have Health Care.

 

[Paulacton84]

I ...based on the kilowatt hours on the battery. This information was provided by the Volt advisor from OnStar....?

one other thing: the volt has a 16.5 KWh battery, that's the number you asked for and received I hope

 

[Steve-o]

I received the full 7500 credit. Did you file both form 6251 (Alternative Minimum Tax - Individuals) in addition to form 8936 (Qualified Plug-in Electric Motor Vehicle Credit)? You must file form 6251 to even though you are not impacted by the AMT to show the IRS that you are not affected.

Ah, yes. That's a very important point. I didn't have any trouble getting the full $7500 credit, but I remember now that I made sure I filed the AMT form, even though I didn't owe any AMT, because of something I read on gm-volt.

 

[hyperlexis]

This is exactly why people in the EV community should demand from their elected officials that the current EV tax credit system be turned into a point-of-purchase rebate at the time of sale. Let the dealers get the credits and pass the full amounts along straight to the buyer. The current mess is too confusing, too open to errors, and only allows credits to be taken by those with high enough income to allow it. Plus the current credits can't even be rolled over to a following year's return if one's taxes aren't high enough to take the full EV credit in one year. The new proposed budget is supposed to address this, but with the way things are in Congress, I bet it will be stripped out. The GOP hates EVs (esp GM's Volt) and anything to increase their use will face an uphill battle. Only if voters start demanding change will this all improve.

 

[DonC]

Was $7400 a typo? You should have filed for a tax credit of $7500. You may want to fix that.

The only way you will not get the full $7500 credit is (a) less tax than that is due or (b) the $7500 EV credit lowers your regular tax and thereby disallows other credits which are subject to the AMT (the EV credits are not subject to the AMT). If neither of these situations apply then the IRS has made a mistake. I'd actually lean in that direction because $4500 is such a round number and the AMT usually doesn't end up as such a round number. But without knowing what's on your return it's impossible to say.

Should not be hard to get this sorted.

You must file form 6251 to even though you are not impacted by the AMT to show the IRS that you are not affected.

Yes. That's situation (b).

Wow, the IRS sure makes things confusing.

I think Congress writes the rules. LOL I always defend the IRS because it has an impossible job. The clowns in Congress have made things so confusing no one can understand how the whole thing works, especially for what the government pays, and then they hold hearings and want to know why things aren't working so well. My suggestion: Look In Mirror.

Junk it. Go to VAT and be done with all this nonsense.

 

[DonC]

one other thing: the volt has a 16.5 KWh battery, that's the number you asked for and received I hope

FYI you don't get any credit for anything larger than 16 kWh.

 

[Elemental]

FYI you don't get any credit for anything larger than 16 kWh.

Thats what she said.

 

[Mcgsp]

I think Congress writes the rules. LOL I always defend the IRS because it has an impossible job. The clowns in Congress have made things so confusing no one can understand how the whole thing works, especially for what the government pays, and then they hold hearings and want to know why things aren't working so well. My suggestion: Look In Mirror.

Junk it. Go to VAT and be done with all this nonsense.

While congress writes the laws it is up to the agencies whether it is the IRS or any other federal agency to implement the law and therefore write the rules needed to implement the law. In this case the IRS has set the rules on how implement the Tax Credit. They also choose what forms are needed or to be created in order to implement the law. So while Congress can be blamed for many a thing especially this do nothing house, but in this case they the issue lies with the IRS implementation of the Tax Credit. And this do nothing house of reps will absolutely do nothing to clarify this issue with IRS as long as the anti EV lobby with the financial support of the koch bros is in control of this current house of reps.

 

[rdunniii]

For future reference, because it is too late now. If you have less than a $7500 tax liability and you have a traditional IRA convert some of it to a Roth IRA and use the amount converted as additional income to get the $7500.

And I'm with DonC on this one; except VATs. The 501c4 debacle will forever and ever be the classic example. My wife is a retired revenue agent and she says the code rules over any regs. Now that everyone knows what the code says versus what the regs for code section 501c4 say IRS is in a catch 22. All code to regs go through an extensive period of review including public review and likewise require all that rigamarole to be fixed. Problem is. big money doesn't want it fixed - on either side. And that looney tune Darrell Issa's oversight committee can pigeon hole the fix forever trying to find an Obama bogey man in 1959. She says another possible way is for someone at IRS with some stones to apply the code thus challenging the regs. They will get reprimanded and possibly fired. But a public wrongful termination lawsuit should get the process moving and probably big bucks for the plaintiff. Sad, just soooo sad.

OBTW, I'm against any taxes that are not income taxes. After all, all taxes are, in the end, income taxes, whether or not you have the income to pay them. Unemployed with both a mortgage payment and property taxes due and only the money to pay one, you're just plain screwed. VATs are an economic disincentive and in my book we don't need economic disincentives.