Hybrid tax credit bait and switch

[Prianista]

Unfortunately, unless you earn more than $750,000 a year, you can't be sure you will qualify for the full published credit for your vehicle. [more]

[Earthling]

I hope my accountant can get me the tax credit I anticipated, with is around $1300.

It would take an accountant to figure out that article.

Harry

[MegansPrius]

<div class='quotetop'>QUOTE(Prianista @ Jan 26 2007, 12:15 PM) [snapback]381115[/snapback]</div>

Unfortunately, unless you earn more than $750,000 a year, you can't be sure you will qualify for the full published credit for your vehicle. [more]
[/b]

Glancing at the article, it appears if you earned under 200k you're in pretty good shape as well, although I would certainly be glad to hear what JimN thinks of this.

>>Singles do much better. They can get the full credit with income anywhere between about $25,000 and $115,000. This disparity reflects the fact that the AMT incorporates a hefty marriage penalty, and is structured to be anti-child. The larger your family, the harder it is to escape AMT; even if you do escape, the margin of escape tends to be small, which means your hybrid tax credit will be correspondingly reduced.

Single or married, it is virtually impossible for California homeowners with incomes between $200,000 and $500,000 to escape the AMT. If this is your situation, your hybrid tax credit will almost certainly be zero. In general, as income rises above $100,000, the allowable credit begins to drop rapidly, especially for larger families. <<

[TonyM]

<div class='quotetop'>QUOTE(MegansPrius @ Jan 26 2007, 08:40 AM) [snapback]381134[/snapback]</div>

Glancing at the article, it appears if you earned under 200k you're in pretty good shape as well, although I would certainly be glad to hear what JimN thinks of this.

>>Singles do much better. They can get the full credit with income anywhere between about $25,000 and $115,000. This disparity reflects the fact that the AMT incorporates a hefty marriage penalty, and is structured to be anti-child. The larger your family, the harder it is to escape AMT; even if you do escape, the margin of escape tends to be small, which means your hybrid tax credit will be correspondingly reduced.

Single or married, it is virtually impossible for California homeowners with incomes between $200,000 and $500,000 to escape the AMT. If this is your situation, your hybrid tax credit will almost certainly be zero. In general, as income rises above $100,000, the allowable credit begins to drop rapidly, especially for larger families. <<
[/b]

Another reason to be happy that I took 10 months off last year to rest and revitalize.

Cheers.

[excuseMeButt]

Conversely, the very best way to escape the AMT and be eligible for a full hybrid tax credit is to earn upward of a million dollars.

The best way to make sense of this oddly structured tax credit is to see it as the apotheosis of Republican tax policy: that tax relief is properly reserved for those who pay the most taxes (i.e., millionaires).



~E

[zzyzx]

Single and childless here, so I guess I can be less scared now.

It's hard for me with an income nowhere near 6 figures to really feel bad for people making between 200 and 500k. Maybe that's wrong of me, but if you're making a half million a year, what's $3150?

[excuseMeButt]

This article seems to be saying something different:

Neither is the sometimes hefty tax credit for purchasing a qualified hybrid car. "If you're in AMT, you don't get that credit," said Francois Hechinger, a partner with BDO Seidman, in San Francisco. "I just called a client to tell him, 'You're not going to get that. You're in the AMT. He said, 'That lousy [car] salesman. He didn't tell me that one.'"

http://www.nasdaq.com/aspxcontent/NewsStor...000015.htm&

~E

[MegansPrius]

<div class='quotetop'>QUOTE(excuseMeButt @ Jan 26 2007, 02:47 PM) [snapback]381238[/snapback]</div>

This article seems to be saying something different:
[/b]

Not really. The nasdaq link you posted pretty much agrees with the earlier article, i.e, you need to worry about it if you're affluent (>125K$ combined income in nasdaq, >$200k combined income in SFGate). Some of us poor buggers should get the credit just fine.

From Nasdaq article >>"If you're single and make more than $75,000 or a married couple with income of $125,000 or more, it's time to do or pay for the additional computation," LeValley said<<

[excuseMeButt]

I looked at the form 8910 and it appears to me that if your Regular Tax is greater than your TMT you get the credit depending on how much difference there is. I am not a tax expert and haven't prepared my taxes yet but it appears that I will get at least some of the credit.

~E

[PatriciaRummel]

Are new Prius owners receiving a notice from Toyota for varification of tax credit eligibilty? I thought I read someplace that three proofs will be necessary in the event of an audit. A verification from Toyota, the Federal government, and sales receipt. Is this true or is it only the bill of sales?