Tax Credit fluxuates based on income???

[curtissac]

<div class='quotetop'>QUOTE(CJmebm @ Jul 31 2006, 09:39 AM) [snapback]295072[/snapback]</div>

I just purchased a 2006 super white package #6 prius... YAY!!!

I purchased on Saturday and today (Monday) called my salesman to ask about what I need to do to receive the 3150 tax credit (I did not know if there was a form I was supposed to receive or something).

He told me- the credit varies based on income and to call my accountant... Needless to say I was pretty angry that 1) this was not explained prior to the purchase and 2) that Toyota (or that specific dealership) could give me no more detail about the fluxuation beyond, "call your accountant, he'll know".
Any information people have on this would be greatly appreciated.
Thanks
Carly
[/b]

Why did you call a car salesman for tax advice?

A responsible sales person would never tell you *how* to get your tax credit. That is a job for your tax preparer or CPA. They are not supposed to give you tax advice. At the same time, when they told you that the car was eligible for a $3150 tax credit, which was accurate, but they should have immediately qualified that by saying you should consult your tax advisor.

While I am now repeating what others have already said, I don't know of any income restrictions but if you pay AMT you may lose it.

Another thing to consider - Did you buy or lease? If you leased, you don't own the car, you are just renting it, and the leasing company gets the tax credit instead of you.

[tacomel]

Bingo - you've got it, and now know more about the AMT than 99% of the general population.

Is it worth it for you to talk to a tax advisor now? That depends. If you have "timing" items, it might be worth it. For me, after previewing my AMT situation, I will pay my property taxes in January of 2007 rather than "early" in December of 2006, since I'll get no deduction this year. On the other hand, if you don't have to make decisions about those sorts of things, and you don't intend to adjust your withholding in anticipation of the tax credit, then you can sit back and wait until next year to figure this all out. And yes, TurboTax will figure out if you owe AMT.