Jeff Andrews wasn't worried about claiming the EV tax credit this year; it wasn't his first time doing so.
He followed the same steps as he did when he claimed the credit in 2018: He purchased a qualifying electric vehicle and then filled out the paperwork during the following tax season. But this time, when Andrews tried to claim the credit for a Chevrolet Bolt he purchased in 2024, the IRS didn't accept it. "It got rejected almost immediately," Andrews told CNET.
He's not alone. Similar accounts are bubbling up in news reports and Reddit forums, evidence that an issue in IRS reporting is blocking some Americans from claiming the $7,500 discount.
Here's what to do if you're in the same situation.
Why some people aren't getting the EV tax credit
Andrews purchased his Chevy Bolt on the first day of 2024 -- the first day of a new EV tax credit policy that allows buyers to claim the discount at the point of sale rather than filing for it later on their tax returns.
The car dealership, however, wasn't prepared on Jan. 1 to give Andrews the discount at the time of purchase. He says the dealership tried, for hours, to make it work, but could not. Andrews wasn't concerned: He figured he could walk out and claim the credit on next year's tax return like he had done for a previous EV purchase.
That's exactly what he tried to do recently, filing his return on TurboTax. But he was met with a rejection. His vehicle should have qualified for the credit, but an error message told him the vehicle identification number on his tax return didn't match an IRS database of EVs sold in 2024.
That's the problem: Andrews' dealership didn't file the VIN with the IRS within 72 hours of the vehicle sale, as required starting in 2024.
According to Mark Luscombe, a CPA and principal federal tax analyst for Wolters Kluwer Tax & Accounting, many dealerships across the country have made the same mistake.
And even now, as customers and dealers are discovering the oversight, it seems too late to fix: The IRS doesn't allow the VIN to be filed beyond the 72-hour purchase window.
The IRS did not respond to a request for comment.
How to deal with the problem
There's not much that EV buyers in this situation can do right now.
First, make sure the VIN filing really is the issue. There are many other requirements to qualify for the EV credit, including income limits and details about how the car is manufactured. Rule out other issues that may simply disqualify you before you blame the car dealership, says Lisa Greene-Lewis, a CPA and spokesperson for TurboTax. You can also contact your car dealership and confirm whether it filed your VIN properly.
If you really are in the same boat as Andrews, and it's a simple oversight in record-keeping, you might be stuck for now. One option, Luscombe says, is to wait a bit longer into tax season to see if the issue is resolved before filing your return. While the IRS may be aware of, and even trying to fix, this problem, there's no guarantee that a solution will materialize before the April 15 tax filing deadline.
Andrews, who also called the IRS to no avail, sees a simple remedy: Allowing car dealers to enter VINs from last year for any vehicle sales they didn't report. "It should be something that's easy to fix," he said.
Until then, Andrews is waiting to see if the IRS makes a change in the next month or so. "I'm in limbo," he said.
How the EV tax credit works
In most circumstances, claiming the EV tax credit is not this complicated.
Starting in 2024, car dealers have been able to offer the discount at the point of sale, meaning customers take $7,500 off the sticker price and don't need to file for the tax credit later. (The car dealer later claims the credit on its end.)
This has been popular, and understandably most customers have chosen to do this rather than deal with IRS paperwork.
The car you're purchasing must also qualify. You can view the full list of those vehicles here. These EVs meet specific criteria on battery scouring and domestic assembly and fall under designated prices. To claim the credit, you need an income below $300,000 for married couples or $150,000 for individuals.
The credit for qualifying new EVs is $7,500, but some used EVs also qualify for a $4,000 credit.
And one last tip: If you don't get the credit at the time of purchase and plan to claim it in 2026, make sure that the salesperson has filed your VIN with the IRS before you leave the dealership.
