h&r block said no to 7500, and said your only getting 2500 ?

[downforceusa]

I need some help here, is there something i can show or do. my h&r guy is saying i'm only getting 2500.00 not 7500.00... he show me this

the credit begins to phase out for a manufacturer's vehicles when at least 200,000 qualifying vehicles have been sold for use in the united states (detemined on a cumulative basis for sales after december 31, 2009) for additional information see notice 2009-89.. please help

i already show him the 1040 form , but still no good.

 

[Devin]

Yikes. I'd look for another accountant next year. Sounds like this guy could be giving all sorts of your money to the IRS.

Show him these links...

http://www.irs.gov/businesses/article/0,,id=219867,00.html" onclick="window.open(this.href);return false;

and

http://www.irs.gov/businesses/article/0,,id=230506,00.html" onclick="window.open(this.href);return false;

and

http://www.fueleconomy.gov/feg/taxevb.shtml" onclick="window.open(this.href);return false;

He's actually quoting you info from the first link. He evidently doesn't understand or hasn't read the entire page.

 

[FairwoodRed]

Also show him your VIN Number and ask him to explain how that equates to 200,000 cars sold...

 

[EVDRIVER]

I agree with getting a new tax person, certainly don't consider a solar rebate :lol:

 

[Luft]

I need some help here, is there something i can show or do. my h&r guy is saying i'm only getting 2500.00 not 7500.00... he show me this

the credit begins to phase out for a manufacturer's vehicles when at least 200,000 qualifying vehicles have been sold for use in the united states (detemined on a cumulative basis for sales after december 31, 2009) for additional information see notice 2009-89.. please help

i already show him the 1040 form , but still no good.

Do you only have a $2,500.00 tax liability? If so your accountant is correct. You don't get more back than you have paid in. If you have a $7,500.00 or more tax liability then get another accountant.

 

[smkettner]

200,000 phase out :lol: :lol: :roll:
Can HRB

 

[lpickup]

He's probably using form 8834 instead of 8936 (I did the same thing at first). That one's for "low speed EVs" and 2- and 3-wheeled EVs.

I'd be willing to give the guy a partial pass since I'm sure they don't see a whole lot of these coming through, except the whole thing about the phase-out is complete BS that he made up to justify why he "got" $2500 instead of $7500. Interestlingly enough though, he does appear to get the "phase out" quote from the form 8936 instructions. From: IRS Form 8936

The credit is subject to a phaseout (reduction) once the vehicle manufacturer (or, for a foreign manufacturer, its U.S. distributor) sells 200,000 of these vehicles to a retailer for use in the United States after 2009. The phaseout begins in the second calendar quarter after the quarter in which the 200,000th vehicle was sold. Then the phaseout allows 50% of the full credit for 2 quarters, 25% of the full credit for 2 additional quarters, and no credit thereafter.

I would ask him what math he is using, even if he somehow thinks we're in the 50% or 25% period, to get from $7500 to $2500.

And then tell him to use form 8936 and not 8834.

 

[surfingslovak]

He's probably using form 8834 instead of 8936 (I did the same thing at first). That one's for "low speed EVs" and 2- and 3-wheeled EVs.
...
And then tell him to use form 8936 and not 8834.

Yup, that's a fairly common mistake. Make him fix it!

 

[planet4ever]

Given the ... er ... perceptual limitations ... your tax man apparently has, insist that he look at the third reference Devin gave you. That shows a picture of a Nissan Leaf and says specifically that it gets a $7500 credit, with no phaseout yet.

[And then go someplace different next year.]

Ray

 

[coqui]

Get a new accountant.

I need some help here, is there something i can show or do. my h&r guy is saying i'm only getting 2500.00 not 7500.00... he show me this

the credit begins to phase out for a manufacturer's vehicles when at least 200,000 qualifying vehicles have been sold for use in the united states (detemined on a cumulative basis for sales after december 31, 2009) for additional information see notice 2009-89.. please help

i already show him the 1040 form , but still no good.

 

[downforceusacom]

this guy already e file my tax, i'm going to see him today and see what he can do. thanks guys

 

[lpickup]

this guy already e file my tax, i'm going to see him today and see what he can do. thanks guys

Then I would insist that he amends your return at no charge. A tax professional should not have missed this. After all, their ads on TV show how much extra money H&R Block can save their customers. They ended up COSTING you $5000. I would not let them off the hook on this.

 

[thankyouOB]

this is just incorrect.
they must fix it or pay you back.
also, you must refile. it is a very simple form and clear language. they just pulled the wrong EV form.
I actually printed out the one to use and gave it to my EA. I understood that I would be his ONLY client with an EV and a mistake was possible with three different EV forms that vary with the battery and other particulars of the car versus golf cart, etc.
dumb
dumb
dumb

 

[smkettner]

Better get fixed for free. Should give full refund of fees for your hassle due to his poor training and knowledge.
At least insist on free audit protection.

 

[hill]

I need some help here, is there something i can show or do. my h&r guy is saying i'm only getting 2500.00 not 7500.00... he show me this

the credit begins to phase out for a manufacturer's vehicles when at least 200,000 qualifying vehicles have been sold for use in the united states (detemined on a cumulative basis for sales after december 31, 2009) for additional information see notice 2009-89.. please help

i already show him the 1040 form , but still no good.

Do you only have a $2,500.00 tax liability? If so your accountant is correct. You don't get more back than you have paid in. If you have a $7,500.00 or more tax liability then get another accountant.

At least there's a carry-over provision. You don't use it up this year, you can use the remainder next year. That's fortunate (or is it unfortunately) for us . . . we have the whole $7,500 credit for next year.

 

[dgpcolorado]

At least there's a carry-over provision. You don't use it up this year, you can use the remainder next year. That's fortunate (or is it unfortunately) for us . . . we have the whole $7,500 credit for next year.

Are you talking about the EV tax credit on Form 8936? That credit can't be carried over to the future (unlike a solar tax credit). The instructions for Line 15:

Line 15
If you cannot use part of the personal portion of the credit because of the tax liability limit, the unused credit is lost. The unused personal portion of the credit cannot be carried back or forward to other tax years.

That's part of the problem with the tax credit: since it isn't refundable nor can it be carried over to future years one can't use all of it unless one has $7500 in tax liability in the year the credit is applied.

We have had much discussion in other threads about how to raise income to the level needed to claim the entire tax credit. The other strategy is to lease the LEAF because then the finance entity claims the credit and it is used as part of the down payment. (But that doesn't work well in my state because one forfeits much of the state tax credit.)

 

[garygid]

Right, use form 8936, and "use it (the tax credit) or lose it".

 

[thankyouOB]

folks here are right that it is not refundable, is usable ONLY in the tax year purchased.
use the form mentioned above not the one H&R used.
you can google irs and EV tax credit and see the differences.
there is a phase out due to sales per manufacturer, but we are nowhere near that for Leaf.

I got the EV and the EVSE credit in the same year. or at least filed for it and am waiting the refund verification of what was filed.
that is not simple to do, apparently. you have to fit into a particular band of income and deductions so that you have enough tax liability but dont also get into the AMT.

the best way to do that is to use an IRA to ROTH transfer to manipulate your income upward, if it is in the mid-five figures.
that will only work, now, for folks who buy this year as it is too late for others.

 

[Jim66]

I got the EV and the EVSE credit in the same year. or at least filed for it and am waiting the refund verification of what was filed.

I too got both credits, and received the refund verification last week - so apparently all is OK.

 

[thejabrother]

Excuse my french, but **** H&R and the Taxcut software. I too had this problem with the online program. I went through my entire taxes and then got to the credit for EV and it was only 2500. I wasted about 4 hours with their crap and then chatting online with a "tax professional". Turns out, H&R never took the time to add the new form to the software. SO I filed an extension and used Turbotax instead. I've always used online H&R but never again! I'm wondering if a big wig at H&R is anti-EV or something? I mean why else would the company ignore a tax credit when more than 10,000 Americans are going to be planning to request the 7500 credit?