Form 8936

What Is A Form 8936 

Form 8936 is a tax document issued by the Internal Revenue Service (IRS) entitled 'Qualified Plug-in Electric Drive Motor Vehicle Credit.' This form is integral for individuals who have purchased a qualifying electric vehicle and want to claim a credit on their federal income tax return. The credit can be substantial, with the potential to offset a portion of the cost of an eco-friendly vehicle. It helps to encourage the adoption of electric cars by providing a financial incentive for buyers, promoting a transition to more sustainable transportation options.

When to Use IRS 8936 

Form IRS 8936 finds its utility in a few specific situations. Taxpayers should use this form:

• When they've purchased a new qualifying plug-in electric vehicle, including cars and some four-wheeled vehicles;
• If they've put the vehicle into service during the tax year;
• When they are the original user of the vehicle, meaning it should be new and not used;
• If they've started using the vehicle primarily in the United States. Taxpayers must confirm that their vehicle is indeed eligible for the credit before proceeding. The IRS maintains an updated list of qualifying vehicles.

How To Fill Out Form 8936 Instruction 

Part I: Tentative Credit

List the year, make, and model of the vehicle(s).

Vehicle Identification Number (VIN):

Provide the VIN for each vehicle.

Enter the date you started using each vehicle.

Cost and Phase-Out Percentage:

Input the phase-out percentage and calculate the tentative credit by multiplying the vehicle cost by the phase-out percentage.

Part II: Credit for Business/Investment 

Using Part of Vehicle (Skip if the vehicle was not used for business or investment purposes)

Determine the percentage of business or investment use for each vehicle.