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To prove your vehicle’s eligibility for the clean vehicle tax credit and successfully claim it, you need to have specific documentation primarily centered around a time-of-sale report provided by the seller at the time of purchase. Here is what you need:
- Time-of-sale report from the seller: At the time you take possession of the vehicle, the seller must provide you with a time-of-sale report and a copy of the IRS confirmation that the report was accepted. This report includes:
- Proof that your purchase is eligible for the credit.
- The exact credit amount available based on your vehicle’s VIN.
- Confirmation that the dealer reported the sale to the IRS within the required period (3 days).
- Information included in the time-of-sale report:
- Name and taxpayer identification number (TIN) of the seller.
- Your name and TIN.
- Date of sale and sales price.
- Verification of the maximum tax credit the vehicle qualifies for.
- Vehicle Identification Number (VIN).
- Vehicle’s battery capacity.
- Confirmation that you are the original user of the vehicle.
- A statement from the seller under penalty of perjury confirming all the above.
- If you transfer the credit to the dealer for a direct discount:
- You must provide your taxpayer ID (usually your Social Security number) and a photo ID at purchase.
- Attest your modified adjusted gross income (MAGI) meets the eligibility requirements.
- Confirm that the car will be primarily for personal use.
- Agree to file a tax return for the year of purchase with the vehicle details and transfer election.
- If you did not receive a time-of-sale report: Contact the seller to get one because you are not eligible to claim the credit without a successfully submitted time-of-sale report.
- Filing requirements: When filing your tax return for the year you took delivery of the vehicle, you must include Form 8936, Clean Vehicle Credits, even if you transferred the credit to the dealer at sale. Make sure the VIN is entered correctly on Form 8936 to avoid rejection.
In summary, the essential documentation you need to prove your vehicle’s eligibility includes the time-of-sale report from the dealer with all relevant details confirming eligibility and disclosure statements, plus Form 8936 when filing your tax return. Without the time-of-sale report, you cannot claim the credit. If you lose the report, contact the seller to obtain it.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/what-documentation-do-i-need-to-prove-my-vehicles-eligibility-for-the-tax-credit/
