$3100 Prius tax credit question.

[Jeffreywho]

My total tax is about $4200. and I only pay $2200. after the child tax credit. I'm exempt from the AMT. So would I get the whole $ 3100 dollars credit or only part? Thanks

[mdmikemd]

Originally posted by Jeffreywho@Dec 10 2005, 09:16 PM
My total tax is about $4200. and I only pay $2200. after the child tax credit.  I'm exempt from the AMT.  So would I get the whole $ 3100 dollars credit or only part?  Thanks

[snapback]171507[/snapback]

For sure you wouldn't get a rebate...if you only pay $2200 in taxes, then your tax credit would only be equal to that amount...

You might want to look into whether you can carry over the tax credit to the next year.

[Jeffreywho]

Originally posted by mdmikemd@Dec 10 2005, 10:27 PM
For sure you wouldn't get a rebate...if you only pay $2200 in taxes, then your tax credit would only be equal to that amount...

You might want to look into whether you can carry over the tax credit to the next year.

[snapback]171511[/snapback]

That's what I thought,,,thanks

[GreenMachine]

Originally posted by Jeffreywho@Dec 10 2005, 09:55 PM
That's what I thought,,,thanks

[snapback]171522[/snapback]

On the other hand, it will be your 2006 income that will be taxed -- so you just might have enough income if things work out.

[roryjr]

I'm not too sure about that. I had a bad year (out of work for a good part of it). I paid about $600 in federal taxes and got back about $2800 (earned income CREDIT). This makes me think you may still get it since it is a credit.

[windstrings]

Originally posted by roryjr@Dec 10 2005, 08:03 PM
I'm not too sure about that.  I had a bad year (out of work for a good part of it).  I paid about $600 in federal taxes and got back about $2800 (earned income CREDIT).  This makes me think you may still get it since it is a credit.

[snapback]171529[/snapback]

yea... I'm not sure about not getting it all back either..... I know uncle sam doesn't like giving away money... but thats exactly what hes doing when he allows you not to pay what you normally would?
A credit should be a credit.. you should not be penalized because you make less.
If they are going to give you a credit to equalize the pain of the extra cost of buying a hybrid, they should not be able to renig if you didn't have taxes to pay in because of being out of work or injured etc.

Now just because this is what "as it shoud be" doesn't mean thats the way it is!
I'm surprised this issue is not cleared up by now.
Maybe it is and I'm unaware.

[DaveinOlyWA]

Originally posted by mdmikemd@Dec 10 2005, 06:27 PM
For sure you wouldn't get a rebate...if you only pay $2200 in taxes, then your tax credit would only be equal to that amount...

You might want to look into whether you can carry over the tax credit to the next year.

[snapback]171511[/snapback]

that is probably wrong there. a credit is money paid out even if you PAID NO TAXES AT ALL

hope that clears it up

[windstrings]

Originally posted by DaveinOlyWA@Dec 10 2005, 08:25 PM
that is probably wrong there. a credit is money paid out even if you PAID NO TAXES AT ALL

hope that clears it up

[snapback]171543[/snapback]

Yay.. way to go Dave!

[Paradox]

Ok, call me stupid but I have no deductions and never have. My wife and i have very simple taxes, claim single zero and usually get a return of about $1200-1400.

So, does that mean that I will not get the $3100 plus my normal return? I always thought a credit was that, a credit applied to me and if I was getting a return this would be applied in addition to my return.

[windstrings]

Originally posted by Paradox@Dec 10 2005, 09:59 PM
Ok, call me stupid but I have no deductions and never have.  My wife and i have very simple taxes, claim single zero and usually get a return of about $1200-1400.

So, does that mean that I will not get the $3100 plus my normal return?  I always thought a credit was that, a credit applied to me and if I was getting a return this would be applied in addition to my return.

[snapback]171575[/snapback]

Not having deductions should have no bearing on anything as far as the credit goes.
If Dave is right

a credit is money paid out even if you PAID NO TAXES AT ALL

, then you should get 3100.00 in addition to what you would have gotten anyway. I just hope Dave is right.

At least thats the way I'm interpreting this whole thing.

there has been discussion in prior threads indicating you can only collect up to the amount you paid in..... This is the issue we are discussing. That may indeed not be correct. We may never really know until it happens, but it would be nice if a tax person who really knew could comment.

Dave seemed to answer with a fair amount of certainty that you get in back period!..
I hope he's right!