Tesla Tax Credit... am I screwed?

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Was the credit applied point of sale by Tesla?

Yes. I had it applied up front.

I chose that. They want me to enter the "Date of Service" which is AFTER 9/25/25. And when I put in 10/19/25 (which is what it says in the report), it's making me pay it back.

Do you exceed the income limits?

I do not! I think Tesla just scammed us all. It has to do with "Date Placed in Service" and "Date of Purchase". I had the written binding contract and payment on 09/25/25. But those both above have dates of 10/19/25. When I put in a date before 9/30/2025, its fine. When I put in the October one, it's making me pay back the $7500.

So put in 9/25…

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I don't want to be audited and have to pay this shit back. I don't know what to do. I've always done my taxes in TurboTax. I guarantee this forum is about to be flooded with people who do their own taxes and have the same issue.

So put in the date before 9/30, problem solved. Verbage straight from the IRS website: If a taxpayer acquires a vehicle by having a written binding contract in place and a payment made on or before September 30, 2025, then the taxpayer will be entitled to claim the credit when they place the vehicle in service (namely, when they take possession of the vehicle), even if the vehicle is placed in service after September 30, 2025. Taxpayers should receive a time of sale report from the dealer at the time they take possession or within three days of taking possession of the vehicle

Would your deposit receipt not suffice?

I'm going to put the 9/25 date in. I just don't want to be audited.

Thats the question. If you line up what they are asking with the exact fields in the 15400 form, your date is going to be outside of the 9/30 deadline. So you would have to put the date of the written, binding contract / date of down payment to get it. So it is just confusing on that end.

If you have any doubts or to ease your mind this could be one of those years where paying a professional do your taxes is worth it.

Thank you for this! It seems more on the end of Turbotax. But I am still nervous since I'm putting a different date in than the fields it is asking.

Here is a link to screenshots I took of it. It is very contradicting. https://imgur.com/a/3kmHMN6

I would worry only if you did not receive a printout from the dealer the clean vehicle transfer business - the one the IRS portal the dealer had set up - yours being Tesla - should have been. The thought is, if this paperwork was not filed and you claim the credit, you are making a mistake; however, Tesla must have received the $7500 they were owed, because they sold the car for $7500 less, and that only happens if they filed the paperwork correctly! If the form itself has the cut off date as 9/30, then just put in the date you finalized the deal. Everything will balance out at the IRS when they see they paid Tesla the $7500.

Thank you and I agree. I am about to put a link to some screenshots to show people in the post.

From the IRS: "For purposes of sections 25E, 30D, and 45W, a vehicle is “acquired” as of the date a written binding contract is entered into and a payment has been made. **A payment includes a nominal downpayment** or a vehicle trade-in." [https://www.irs.gov/newsroom/faqs-for-modification-of-sections-25c-25d-25e-30c-30d-45l-45w-and-179d-under-public-law-119-21-139-stat-72-july-4-2025-commonly-known-as-the-one-big-beautiful-bill-obbb](https://www.irs.gov/newsroom/faqs-for-modification-of-sections-25c-25d-25e-30c-30d-45l-45w-and-179d-under-public-law-119-21-139-stat-72-july-4-2025-commonly-known-as-the-one-big-beautiful-bill-obbb)

Thank you! I think I will put in the date of the written, binding contract and hope I don't get fucked lol

you can't treat TurboTax as infallible

If the IRS tries it, you have the law as written. Print the page and keep it with your tax files.

I got something from the IRS in the mail that said to make sure to fill out form 8936, Schedule A which I guess is the the Clean vehicle tax credit. PS, it was worded very poorly. You should have also got something like that.

Is this issues in TurboTax that you are actually working on right now? If so, there will be many cases like you. I'm on the same situation and I saw that report last year after I took delivery. The same, Tesla put on the report, all dates are after Sep 30. If you find out how to handle this, please share with me. I really appreciate it. Thank you.

The information in the top half of the picture. Where did you take that screenshot (first half)?

The top is the vehicle seller report that Tesla gave you for taxes. The bottom is turbo tax.

If you had the credit applied up front, you can’t claim the tax credit again. Period. If you owe more than 7500 in taxes, you screwed up. Tesla had nothing to do with your choice. Look in the mirror for someone to blame. A bottom line tax credit is always worth more than a discount up front, IF you can use the full credit to set off taxes owed.

I am going to look at it in a bit. I will also update the post with results. I'm hoping it's bad wording on TurboTax part or a wrong form I am doing (even though I thought it was the only type).

I'm not trying to claim it again. I'm trying to prove I shouldn't owe it back! I qualify around the board from salary to the vehicle I bought. It is the dates and wording that is confusing!

Sorry, I misunderstood your situation. Tesla in effect claimed the credit. TurboTax screwup.

Watching this thread as I am facing the same issue.

I tested and put exactly like you in TurboTax and I was hit with pay back. Date placed in service: I input any date after September 30 Date of purchase: I put 09/25/2025 like you did. When I proceed with that, I still get pay back because TurboTax says, I acquired after September 30. Did you get the same results as I am?

I confirmed it is form 8936 on TurboTax. So it is either bad wording or code on TurboTax or Tesla pulled a massive scam on anyone wanting these near the end of the credit.

If you fill out the fields they ask with the date placed in service and date of purchase after 9/30... you will be hit to pay it back. If you put the dates before, like when I got the contract 9/25, it is ok. But I am not sure if this is right and I don't want to be audited.

Sounds like Tesla / IRS might be facing a massive lawsuit if they false advertised. I'm sure a ton of people will be pissed.

I am not sure if I even need to note the EV purchase on my taxes. I have a IRS form 15400, clean sellers report, in my Tesla documents. On page 2, it states that the credit was approved. The 7500 went directly to Tesla.

You should've gotten a letter saying you have to fill out another form the 8--- one.

You have the proof and the law on your side. TurboTax is software like FSD. It usually works correctly. I'd put in the date you put your payment, as the LAW states.

The date of the binding contract? Because if I believe correctly, when you buy the Tesla on the app, you have to wait a few days / weeks to even put a down payment down...

When you paid that $250, Tesla had to deliver.

Here is is on the IRS Website. As you can see they specifically mention your situation. [https://www.irs.gov/clean-vehicle-tax-credits](https://www.irs.gov/clean-vehicle-tax-credits)

Yep. Definitely have to. Hopefully, TurboTax makes a correction.

That will get you past TurboTax, but the mismatched date between the form 15400 submitted by Tesla and the 8636 that you submit could throw a flag.

Where can I go to pull this report you mentioned for my recently purchased Tesla? I purchased and received in the month of September as I didn't want to play this game. When I first did my taxes in TurboTax the ev form wasn't available yet. I need to go back and revisit that section again. But I'm interested to know where do I get the report with these dates on it. Edit: found it.... To pull your Clean Vehicle Seller Report (IRS Form 15400), follow these steps on the Tesla website: Sign in to your Tesla Account at tesla.com. Click Manage next to your vehicle. Look under the Documents section for "IRA Clean Vehicle Credit Report."

U don’t file your car the same year it’s the next i believe this why i pay ppl to do my taxes it’s too complicated ugh I didn’t put my car on my taxes last year when I got my car b4 the tax time and now I do it this year

Honestly f the gov and the ppl running it they all trying to use us as mules and they pedos running America omg

Go to a real tax person… it will give you peace of mind and if you get audited it’s the tax person’s fault. I used a tax person during the COVID years. She was able to use tax returns for when I was working my entire length of graduate school They definitely know loopholes

Crazy part is u having to cut corners on taxes bc your paying for a car worth half the price anywhere else with advanced civilization if you so call it and yet we behind in the world and they use us to make the 800 ppl that run us richer and make it seem like we are advanced but I beg to disagree

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Hmm, it worries me that placed in service for me is 3 weeks after my "binding contract" date. I think a lot of people are about to be fucked

You are overthinking this. TurboTax has some behaviors where you have to use overrides or enter dates according to the law not the way their devs happened to code the form. You aren’t trying to figure out how to scam the IRS. You are trying to figure out how to make TurboTax behave correctly. Enter the 9/25 date and don’t think twice about it.

I'm trying not to overthink it but man, I hate the IRS and last thing I want is this to come back. But I will probably use the 9/25 dates and say fuck it

Tesla app has all your documents. TurboTax has the IRS form and info. They said as long as you have a written contract with "payment" it should count. But the way TurboTax is handling this is incorrect and will be confusing for millions of people.

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Just do free tax USA. They do it right, not that turbo tax bull.

I just put in the date of my binding contract. That is what the documentation says even on the IRS website. It is a TurboTax issue with how they are calculating the tax situation.

Awesome, thank you for the insight. I hope it pans out for us 🙏

You know, you might be right. I hate all the upvote/downvote (I certainly didn't downvote) for your concerns. If it was me, I'd roll the dice. You have to get audited to even have this problem (very unlikely), and I think you could go in with an honest opinion.

Here’s what Gemini says: The answer hinges on two specific IRS requirements: a written binding contract and a payment, both made on or before September 30, 2025.  Based on the IRS guidance you provided and the standard Tesla buying process, here is how that likely plays out for your friend: 1. The "Payment" Requirement The $250 order fee generally counts as a "payment" toward the vehicle. IRS guidance indicates that even a nominal down payment or a non-refundable deposit can satisfy the payment portion of the "acquisition" test.  2. The "Binding Written Contract" Requirement This is the trickier part. To count as a binding contract, the agreement must be legally enforceable under state law and not limit damages to a small set amount (like just the $250 fee).  • The Tesla Hurdle: Historically, Tesla’s online "Order Agreement" has been viewed by some tax experts as a "reservation" rather than a binding sales contract because it doesn't always lock in a specific VIN or legal obligation to buy until the Motor Vehicle Purchase Agreement (MVPA) is signed. • The Delivery Gap: If your friend only paid the $250 and didn't sign the final MVPA (which usually happens closer to delivery) until October, the IRS could argue the vehicle wasn't "acquired" until October. 3. The "Seller Report" (The Deciding Factor) The most important step is whether Tesla submitted a "Time of Sale" report to the IRS reflecting an acquisition date of September 30 or earlier. • If Tesla’s system recorded the "sale" as occurring in September when the order was placed and reported it to the IRS as such, your friend is likely in the clear. • If Tesla reported the sale date as the October delivery date, the IRS system will likely automatically reject the credit claim on his 2025 tax return. What your friend should do: 1. Check the Tesla Account: Look for the "Final Price Sheet" or "Motor Vehicle Purchase Agreement." If the document date is on or before September 30, 2025, he has a much stronger case. 2. Confirm the Seller Report: He should have received a copy of the "Clean Vehicle Seller Report" from Tesla (either via email or in his Tesla account). If that report shows a "Date of Sale" in September, he should be eligible. 3. Consult a Professional: Since the "One Big Beautiful Bill" changes are relatively new, tax software might not handle this edge case perfectly. He should keep all timestamps of his order and deposit. What state did you buy it in? It could make a difference on if the tesla order agreement is considered a binding agreement.

Thank you for this! It's funny because I have a document called "Order Agreement" and that is the document with $250. Date of sale says 10/19/25 BUT down payment says 9/25/25. So technically I put a down payment and entered an order agreement on 9/25/25. Honestly, this shit is so confusing and stupid. I feel like we are about to get ripped off. A ton of people will be posting here about it.

I am leaning to just do it and pray. I feel like the system wont match to what Tesla's is so I am going to have to pay them back. Honestly if this happens, we need to revolt as Tesla owners. There was so much false advertising just to get sales before the deadline.

Have you tried FreeTaxUSA to compare the results?

Try tax cut and see what happens. Do you have other tax credits like tuition mortgage, child credit, adoption, etc. that might be confusing the software.

I haven't. I think we need people to try with me. I have a bad feeling we are all going to get fucked.

Go to a CPA The typically charge under $500 for 2 W2s, but if they get you your$7500 legally, then it's totally worth it

You need to be careful. The wording says "...a written binding contract.." Folks debated the meaning of the word "binding" when that policy was extended (search this forum). From a layman's POV, the $250 doesn't seem binding because you could decide not to pick the car and all you lose is the 250. Would you then say such an agreement was binding. Note that I'm not a lawyer. I would say - talk to a tax proffessional.

If could be that the battery capacity is too low for the credit Try entering 70

this is why i gave the credit to Tesla from the jump

Don’t take tax advice on the Internet

This 👏🏾👏🏾👏🏾 Print it out or save a PDF version vs the link for save keeping

Go see a local CPA

if you picked up the car in 2026, should you answer yes or no here?

Yes, it is a binding contract to purchase a vehicle and $250 is the fee for breaking the binding contract.

Wasn't the requirement for tax credit was to take delivery before the end of September?

People were saying as long as you had the binding contract with a payment, you were good. Now I think everyone is about to get fucked

Did you read this part? The vehicle must be placed in service for you to claim the credit. If a vehicle is placed in service after Sept. 30, 2025, you must have acquired the vehicle on or before Sept. 30, 2025, to be eligible for the credit. You can demonstrate acquisition by entering into a binding written contract and making a payment on the vehicle on or before Sept. 30, 2025. A vehicle is placed in service when you take possession of the vehicle. Was your $250 payment a binding written contract? Time to get a specialist to look at this.

Thats the tricky part. The $250 goes towards the cost of the car. So it could be counted as a down payment. But its non refundable so I am not sure if you can say it is. I hate this shit.

I think people were mistaken. The $250 preorder wasn’t considered a binding contract but a lot of people kept saying it was.

Im an accountant, I don’t specialize in tax but I work with it. Follow the law as you understand it. If anything, turbo tax is helping you avoid audit by having you fix the date on the front end. If you get audited, just hire a cpa for a few hundred bucks to handle it. It won’t be the end of the world. YOLO and enjoy your car!!

250 order fee is not a binding contract. Your sale or loan agreement is. For this tax credit to apply, delivery was to be taken on or before September 30th.

It’s non-refundable but isn’t binding?

Yes. Its not. Its just a fee. You haven't signed any contract yet.

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Yes, if your purchase falls in the range it will tell you every single thing you need to do.

Did the irs approve your return?

Where do you find this information about date of sale, binding contract date?

I havent submitted it yet. I will over the next 2-3 weeks.