"$2,000 Clean Fuel" deduction

[IndyDoug]

The time has come to start thinking about filing 2005 taxes. I purchased a 2005 Prius last Aug. How do I claim my Federal Tax Deduction? Do I simply write "$2000 Clean Fuel" on line 35 of Form 1040?

[mdmikemd]

Originally posted by IndyDoug@Jan 1 2006, 08:15 AM
The time has come to start thinking about filing 2005 taxes. I purchased a 2005 Prius last Aug. How do I claim my Federal Tax Deduction? Do I simply write "$2000 Clean Fuel" on line 35 of Form 1040?

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I believe so, there is a link somewhere in this forum that shows how it's done.

[roach52osu]

Originally posted by mdmikemd@Jan 1 2006, 11:26 AM
I believe so, there is a link somewhere in this forum that shows how it's done.

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http://www.irs.gov/newsroom/article/...107766,00.html

Despite the IRS their website is quite a good resource.

[SDiego]

I wonder if say using TurboTax Deluxe will let you deduct within the software? I think it uses 1040 in the program.

Ron

[roach52osu]

Originally posted by SDiego@Jan 1 2006, 02:20 PM
I wonder if say using TurboTax Deluxe will let you deduct within the software? I think it uses 1040 in the program.

Ron

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I used it last year and one of the questions it asked was "did you purchase a hybrid or alternate fuel vehical in 2004" I am hoping it will do the same this year and next.

[mdmikemd]

Originally posted by roach52osu@Jan 1 2006, 01:36 PM
I used it last year and one of the questions it asked was "did you purchase a hybrid or alternate fuel vehical in 2004" I am hoping it will do the same this year and next.

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A few weeks ago I installed Turbo Tax and couldn't find the question where it asked that. Maybe it needs to be updated.

[CinciPrius]

Originally posted by mdmikemd@Jan 1 2006, 01:47 PM
A few weeks ago I installed Turbo Tax and couldn't find the question where it asked that.  Maybe it needs to be updated.

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The online version of TurboTax does handle the deduction - it's inside the 'Other Expenses' portion of the "Your Deductions" section.



Clean-Fuel Vehicle Deduction
Check any of the following that apply to the new clean-fuel vehicle or equipment you purchased during 2005:

The vehicle was designed and built to use clean-burning fuel.

The equipment was installed on a vehicle to enable it to use clean-burning fuel.

You purchased the vehicle or equipment primarily for your own use and not for resale.

The vehicle meets all federal and state emissions standards.

The vehicle has passed emissions certification and testing.

The vehicle is not a qualified electric vehicle. Explain This

The vehicle meets the other qualifications for the clean-fuel vehicle deduction. Explain This

None of the above

[huh]

The IRS link doesn't mention a 2006 Prius purchased in 2005. But then again, the form was updated way back in April.

Cinci, which ones did you check by the way?

[Kiloran]

Originally posted by huh@Jan 2 2006, 06:28 PM
The IRS link doesn't mention a 2006 Prius purchased in 2005. But then again, the form was updated way back in April.

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The IRS doesn't care about model year per se only whether the vehicle is a qualified hybrid.
Toyota has not yet published its certification letter and IRS acknowledgement letter but it would be inconceivable that the 2006 would not be certified for this deduction.