rebate

findlj · 08-09-2006, 09:34 PM

Hello, I'm considering purchasing a prius in the near future and have a question about the tax rebates both federal and state. I understand a federal rebate of over $3000 is available for a hybrid toyota through September 2006.
Does anyone have information and/or experience with this?
I'm also curious about the Missouri state rebate for hybrids. Does anyone know how much this is?
Thanks for your time.

glenhead · 08-10-2006, 09:54 AM

Before you get barraged with "do a search, this has been covered dozens of times" responses, here's the skinny on the federal tax credit.

It's an actual $3150 tax credit, just like the $1000 child tax credit. That is, it comes directly off of the amount of tax you have to pay this year, not off your AGI. It gets cut in half on October 1, 2006, and stays at that level for (I think) six months, then gets cut in half again for another six months, then goes away. I may have the durations a bit off; I've qualified for the full credit, and have purged the rest from RAM. To qualify, you must take actual delivery of a dealership-new Prius on or before September 30. If you're subject to the Alternative Minimum Tax, the amount you get back may be less than the $3150; if you've paid less than $3150 in taxes for 2006, you won't get back more than you've paid. These are things you'll have to figure out for yourself.

I don't have a clue about Missouri taxes.

HTH

eyeguy13 · 08-10-2006, 11:29 AM

Where in Missouri do you live?

findlj · 08-10-2006, 01:37 PM

eyeguy13: Jefferson City.

Thanks for the info glenhead. it's true there's a lot of info out there but how the tax break is applied wasn't really clear to me.

mextaco1 · 08-22-2006, 04:17 PM

Don't lose your federal tax credit!!

Just checked with my accountant and the IRS,

THE $3150 FEDERAL TAX CREDIT IS ONLY AVAILABLE AS A CREDIT, THE IRS SAYS THE FEDERAL TAX CREDIT IS NON REFUNDABLE IF YOU DON'T OWE TAXES!!

IN OTHER WORDS IF YOU USUALLY GET A REFUND YOU WON'T GET THE $3150, YOU HAVE TO OWE TAXES. SO LET'S SAY YOU COMPLETE YOUR TAXES AND YOU OWE THEM $1,000, YOU APPLY THE FEDERAL CREDIT AND YOU OWE NOTHING, BUT YOU DON'T GET BACK THE DIFFERENCE OF $2150.

MY ACCOUNTANT SUGGESTED THAT I REDUCE MY WITHHOLDING BY ABOUT $700 PER MONTH TIL THE END OF THE YEAR (5MONTHS) AND I'D BE ASSURED OF OWING THEM OVER $3150 TO GET THE FULL CREDIT

DO THIS NOW OR BE VERY SORRY COME APRIL 2007!!!!!!

**efusco** · 08-22-2006, 04:25 PM

AFAIK there is no rebate or deduction in MO...we're just not that progressive. Don't get your hopes up for any alternative energy breaks for solar or wind in MO either.

streyle · 08-22-2006, 04:32 PM

<div class='quotetop'>QUOTE(mextaco1 @ Aug 22 2006, 04:17 PM) [snapback]307740[/snapback]</div>

Quote:

Don't lose your federal tax credit!!

Just checked with my accountant and the IRS,

THE $3150 FEDERAL TAX CREDIT IS ONLY AVAILABLE AS A CREDIT, THE IRS SAYS THE FEDERAL TAX CREDIT IS NON REFUNDABLE IF YOU DON'T OWE TAXES!!

IN OTHER WORDS IF YOU USUALLY GET A REFUND YOU WON'T GET THE $3150, YOU HAVE TO OWE TAXES. SO LET'S SAY YOU COMPLETE YOUR TAXES AND YOU OWE THEM $1,000, YOU APPLY THE FEDERAL CREDIT AND YOU OWE NOTHING, BUT YOU DON'T GET BACK THE DIFFERENCE OF $2150.

MY ACCOUNTANT SUGGESTED THAT I REDUCE MY WITHHOLDING BY ABOUT $700 PER MONTH TIL THE END OF THE YEAR (5MONTHS) AND I'D BE ASSURED OF OWING THEM OVER $3150 TO GET THE FULL CREDIT

DO THIS NOW OR BE VERY SORRY COME APRIL 2007!!!!!!
[/b]

You are not correct...

santoro1 · 08-22-2006, 04:38 PM

<div class='quotetop'>QUOTE(mextaco1 @ Aug 22 2006, 04:17 PM) [snapback]307740[/snapback]</div>

Quote:

Don't lose your federal tax credit!!

Just checked with my accountant and the IRS,

THE $3150 FEDERAL TAX CREDIT IS ONLY AVAILABLE AS A CREDIT, THE IRS SAYS THE FEDERAL TAX CREDIT IS NON REFUNDABLE IF YOU DON'T OWE TAXES!!

IN OTHER WORDS IF YOU USUALLY GET A REFUND YOU WON'T GET THE $3150, YOU HAVE TO OWE TAXES. SO LET'S SAY YOU COMPLETE YOUR TAXES AND YOU OWE THEM $1,000, YOU APPLY THE FEDERAL CREDIT AND YOU OWE NOTHING, BUT YOU DON'T GET BACK THE DIFFERENCE OF $2150.

MY ACCOUNTANT SUGGESTED THAT I REDUCE MY WITHHOLDING BY ABOUT $700 PER MONTH TIL THE END OF THE YEAR (5MONTHS) AND I'D BE ASSURED OF OWING THEM OVER $3150 TO GET THE FULL CREDIT

DO THIS NOW OR BE VERY SORRY COME APRIL 2007!!!!!!
[/b]

Is the tax credit applied in full the first year or is it spread out over two years? Since you have to own your Prius two years to qualify. thanks.

mextaco1 · 08-22-2006, 04:40 PM

<div class='quotetop'>QUOTE(streyle @ Aug 22 2006, 01:32 PM) [snapback]307755[/snapback]</div>

Quote:

You are not correct...
[/b]

I'D RATHER OWE MONEY AND BE ASSURED OF USING ALL THE $3,150

<div class='quotetop'>QUOTE(ajs @ Aug 22 2006, 01:38 PM) [snapback]307758[/snapback]</div>

Quote:

Is the tax credit applied in full the first year or is it spread out over two years? Since you have to own your Prius two years to qualify. thanks.
[/b]

CREDIT APPLIES FOR TAX YEAR 2006

ohgreys · 08-22-2006, 04:42 PM

<div class='quotetop'>QUOTE(mextaco1 @ Aug 22 2006, 04:17 PM) [snapback]307740[/snapback]</div>

Quote:

Don't lose your federal tax credit!!

Just checked with my accountant and the IRS,

THE $3150 FEDERAL TAX CREDIT IS ONLY AVAILABLE AS A CREDIT, THE IRS SAYS THE FEDERAL TAX CREDIT IS NON REFUNDABLE IF YOU DON'T OWE TAXES!!

IN OTHER WORDS IF YOU USUALLY GET A REFUND YOU WON'T GET THE $3150, YOU HAVE TO OWE TAXES. SO LET'S SAY YOU COMPLETE YOUR TAXES AND YOU OWE THEM $1,000, YOU APPLY THE FEDERAL CREDIT AND YOU OWE NOTHING, BUT YOU DON'T GET BACK THE DIFFERENCE OF $2150.

MY ACCOUNTANT SUGGESTED THAT I REDUCE MY WITHHOLDING BY ABOUT $700 PER MONTH TIL THE END OF THE YEAR (5MONTHS) AND I'D BE ASSURED OF OWING THEM OVER $3150 TO GET THE FULL CREDIT

DO THIS NOW OR BE VERY SORRY COME APRIL 2007!!!!!!
[/b]

The way that you've worded this is a bit confusing.

The tax credit can offset your federal taxes for the year, up to a maximum of $3150. It makes sense to reduce your withholding so that you are not giving the government an interest-free loan but as long as your tax liability for the year is over $0 and your Prius purchase takes place during the qualifying time period, you can get the tax credit. (Note that this is very simplified and doesn't take into account the AMT.) It does not matter if you pay your taxes during the year via withholding or estimated payments or if you choose to pay them all or in part with your annual return.

Also, as an FYI...using all caps on message boards and in e-mails is considered SHOUTING. If you want to avoid nasty comments, I'd advise you to turn off the caps lock and use your shift key.

08-10-2006, 09:54 AM	#2
glenhead Join Date: Jun 2006 Posts: 166 My Car: Package: Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	Before you get barraged with "do a search, this has been covered dozens of times" responses, here's the skinny on the federal tax credit. It's an actual $3150 tax credit, just like the $1000 child tax credit. That is, it comes directly off of the amount of tax you have to pay this year, not off your AGI. It gets cut in half on October 1, 2006, and stays at that level for (I think) six months, then gets cut in half again for another six months, then goes away. I may have the durations a bit off; I've qualified for the full credit, and have purged the rest from RAM. To qualify, you must take actual delivery of a dealership-new Prius on or before September 30. If you're subject to the Alternative Minimum Tax, the amount you get back may be less than the $3150; if you've paid less than $3150 in taxes for 2006, you won't get back more than you've paid. These are things you'll have to figure out for yourself. I don't have a clue about Missouri taxes. HTH __________________ Silver Pine Mica #4 My other car is a Suburban - slurrrrrrp! Eschew misoneism.

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08-09-2006, 09:34 PM	#1
findlj Join Date: Aug 2006 Posts: 28 My Car: Package: Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	Hello, I'm considering purchasing a prius in the near future and have a question about the tax rebates both federal and state. I understand a federal rebate of over $3000 is available for a hybrid toyota through September 2006. Does anyone have information and/or experience with this? I'm also curious about the Missouri state rebate for hybrids. Does anyone know how much this is? Thanks for your time.

08-10-2006, 11:29 AM	#3
eyeguy13 Join Date: Mar 2006 Posts: 337 My Car: Package: Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	Where in Missouri do you live?

08-10-2006, 01:37 PM	#4
findlj Join Date: Aug 2006 Posts: 28 My Car: Package: Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	eyeguy13: Jefferson City. Thanks for the info glenhead. it's true there's a lot of info out there but how the tax break is applied wasn't really clear to me.

08-22-2006, 04:17 PM	#5
mextaco1 Join Date: Apr 2006 Posts: 12 My Car: Package: Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	Don't lose your federal tax credit!! Just checked with my accountant and the IRS, THE $3150 FEDERAL TAX CREDIT IS ONLY AVAILABLE AS A CREDIT, THE IRS SAYS THE FEDERAL TAX CREDIT IS NON REFUNDABLE IF YOU DON'T OWE TAXES!! IN OTHER WORDS IF YOU USUALLY GET A REFUND YOU WON'T GET THE $3150, YOU HAVE TO OWE TAXES. SO LET'S SAY YOU COMPLETE YOUR TAXES AND YOU OWE THEM $1,000, YOU APPLY THE FEDERAL CREDIT AND YOU OWE NOTHING, BUT YOU DON'T GET BACK THE DIFFERENCE OF $2150. MY ACCOUNTANT SUGGESTED THAT I REDUCE MY WITHHOLDING BY ABOUT $700 PER MONTH TIL THE END OF THE YEAR (5MONTHS) AND I'D BE ASSURED OF OWING THEM OVER $3150 TO GET THE FULL CREDIT DO THIS NOW OR BE VERY SORRY COME APRIL 2007!!!!!!

08-22-2006, 04:25 PM	#6
efusco Troll Slayer Join Date: Nov 2003 Location: Nixa, MO Posts: 14,207 My Car: 2004 Prius Package: #9 Nominated 1 Time in 1 Post TOTM Awards: 0 Friends: 24	AFAIK there is no rebate or deduction in MO...we're just not that progressive. Don't get your hopes up for any alternative energy breaks for solar or wind in MO either.