How is the federal tax credit validated?

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hackdroot

Well-known member
Joined
Apr 15, 2017
Messages
93
Location
East Bay Area, CA
I've never purchased a car with this credit, but with my solar tax credit, I just put the numbers into the tax form and didn't really have to provide any proof of purchase. I bought my leaf used and was thinking the other day of how I could find out if a federal tax credit was collected for a vehicle. I know the chances are probably 0 on a used purchase, but still was curious on how I could find that information on a vehicle.

With my PG&E (local electric company) I had to put the VIN in to validate the availability. I did end up getting that $500 from them since it was unclaimed apparently.
 
The Federal Tax Credit is only for new vehicles, and as I recall, I had to type the VIN number in form 8936 when using Turbotax...
 
Can't speak to the PG&E credit, but the SCE $450 rebate is available for used. But as said above, the Federal is only for new IIRC.

If a prior owner claimed it, I would be very surprised if the IRS didn't catch a repeat claim on the same VIN. If prior owner didn't claim, I'm not sure how they would know, but I wouldn't recommend finding out.
 
It is for new purchases and leases only.

Form 8936 fully explains the return process, you supply the VIN and a few other details. In the event of an audit, you may be required to provide substantiation of purchase, like anything else in a tax return.

Regardless if the credit was claimed or not, it is not applicable to used purchases. Whether you can get away with it or not is up to you.
 
I'm not one to test my chances of an audit, so my question was purely out of curiosity. I can't see a scenario where a buyer would leave that much money on the table, even if used cars qualified. But then again, I've underestimated the general public's common sense when it comes to money before.
 
hackdroot said:
I'm not one to test my chances of an audit, so my question was purely out of curiosity. I can't see a scenario where a buyer would leave that much money on the table, even if used cars qualified. But then again, I've underestimated the general public's common sense when it comes to money before.

The problem with this credit is you have to owe at least $7500 in taxes to take full advantage of it. For many people, the only way to take advantage of the credit is by leasing the vehicle. It is not refundable, like the Earned Income Credit, where you can take advantage even if you owe no taxes.
 
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