2006 Tax Credit forms

mncjudge · 01-16-2007, 07:20 PM

Has anyone attempted to complete the Form 8910 for the tax credit yet? I know it's the 2005 form but the Draft 2006 form on the IRS website has very few changes as of now.

I was fine with the from 8910 until you get to line 16 which asks you to complete form 6251 (AMT) and fill in your tentative minimum tax from line 33. I completed the AMT form and from what I understand if after your charitable deductions if you have a taxable income higher than $42,500 for singles and head of household, $62,550 for married joint filers or $31,275 for married separated filers you will have a tentative minimum tax and that will reduce the amount of Prius tax credit you can claim.

I have not seen anything written stating there is an income limit for the tax credit. I called the IRS (1-800-829-1040) today and spoke with Ms. Huang #28-54051. She went over my form with me and in the end agreed that something did not ring true. It appears one is going to be able to get the credit and then BAM they add the tentative minimum tax to the equation and bye bye tax credit. For me my tentative minimum tax is $770 less then my regular tax due prior to any credits. I have a $0 for the Alternative minimum tax. We are no way near the income limits for anything else tax wise that I have come across. I just don't understand!

My question is, Does anyone know if the original Energy Policy Act of 2005 says anything about an income limit?

The IRS agent left it that she would try to look into this further and would call me if she finds that their will be any more changes to the 2006 form 8910.

I would love to hear what others have learned as I am a bit frustrated to think we may loose this $3,150 credit.

JimN · 01-16-2007, 10:07 PM

Welcome to the site. I believe you hold the record for trying to get your taxes done the earliest. The rest of us are waiting for the correct form to be posted. Hopefully the only change will be the year in the corner. If you are not subject to the AMT then I don't see how the credit can be reduced. Last spring/summer when I was looking for the credit I read through something official. The entire text dealt with the vehicle--no mention of income limits.

This month I'm getting the 1099MISC forms in the mail. Next month hopefully the form will be updated and I'll be ready to take a serious look at this.

gilahiker · 01-17-2007, 04:24 AM

Hi everyone. I'm lost with regards to the actual form to use since I have a CPA who does prepare my taxes. But, I do have a question. The CPA's tax Organizer requests certificate of uniformity from the manufacturer (which I located at Toyota.com for the 2006 Prius) and in another area it asks for a "copy of manufacturer certification of eligible expenditures," which, by this name is not available at Toyota.com. What is available is a "Qualified Hybrid Motor Vehicle Credit Manufacturer Certification, Code Section 30B - Notice 2006-9." Does anyone know if this certification is the same as the eligible expenditures one?? Any help would be appreciated!

JimN · 01-17-2007, 08:10 AM

<div class='quotetop'>QUOTE(gilahiker @ Jan 17 2007, 04:24 AM) [snapback]377054[/snapback]</div>

Quote:

Hi everyone. I'm lost with regards to the actual form to use since I have a CPA who does prepare my taxes. But, I do have a question. The CPA's tax Organizer requests certificate of uniformity from the manufacturer (which I located at Toyota.com for the 2006 Prius) and in another area it asks for a "copy of manufacturer certification of eligible expenditures," which, by this name is not available at Toyota.com. What is available is a "Qualified Hybrid Motor Vehicle Credit Manufacturer Certification, Code Section 30B - Notice 2006-9." Does anyone know if this certification is the same as the eligible expenditures one?? Any help would be appreciated!
[/b]

I honestly don't think the amount of the credit will be in question. I saved a copy of IR-2006-57 dated April 7, 2006 to document the amount. Anything from the IRS stating the amount of the credit for the make, model, and year of the car should suffice. This document is for the benefit of the preparer. You don't file it with the IRS.

mncjudge · 01-17-2007, 09:24 AM

<div class='quotetop'>QUOTE(JimN @ Jan 16 2007, 10:07 PM) [snapback]376605[/snapback]</div>

Quote:

Welcome to the site. I believe you hold the record for trying to get your taxes done the earliest. The rest of us are waiting for the correct form to be posted. Hopefully the only change will be the year in the corner. If you are not subject to the AMT then I don't see how the credit can be reduced. Last spring/summer when I was looking for the credit I read through something official. The entire text dealt with the vehicle--no mention of income limits.

This month I'm getting the 1099MISC forms in the mail. Next month hopefully the form will be updated and I'll be ready to take a serious look at this.
[/b]

Jim-
Thanks, I was hoping I would win some sort of prize. I am still waiting on some paperwork but I'd say my numbers are 99% correct.
We are not subject to AMT but the 2005 and draft 2006 form 8910 use the tentative minimum tax from the AMT form and that you will have if you have more income (after your charitable giving) than the exemption amount on the AMT form. It does not make sense and that is why I am trying to make sure people know about it. I am hoping the IRS will make that change on the draft form. I have emailed the IRS draft forms people and HybridCars.com about it in the hopes that the more people who realize it the more chance for a correction to be made before the 2006 form is finalized.
I'd take a ball park look at it early if I were you.
Thanks

4chi · 01-17-2007, 11:47 AM

You don't have to be subject to AMT to lose the full credit. As I understand it, TMT is less than AMT. I think there was a very good post about the difference between AMT and TMT sometime back, I'll see if I can locate it.

If you have the stomach for it, read this thread:

tmt

And I don't think this is going to be changed on the final form...I think that is just the way this credit works.

01-17-2007, 04:24 AM	#3
gilahiker Join Date: Feb 2006 Location: Silver City, NM Posts: 175 My Car: Package: Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	Hi everyone. I'm lost with regards to the actual form to use since I have a CPA who does prepare my taxes. But, I do have a question. The CPA's tax Organizer requests certificate of uniformity from the manufacturer (which I located at Toyota.com for the 2006 Prius) and in another area it asks for a "copy of manufacturer certification of eligible expenditures," which, by this name is not available at Toyota.com. What is available is a "Qualified Hybrid Motor Vehicle Credit Manufacturer Certification, Code Section 30B - Notice 2006-9." Does anyone know if this certification is the same as the eligible expenditures one?? Any help would be appreciated! __________________ Gilahiker 2006 Driftwood Pearl, pkg #3, purchased 2/11/06, BT Stiffening Plate, 3M Clear Bra

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01-16-2007, 07:20 PM	#1
mncjudge Join Date: Jan 2007 Posts: 4 My Car: Package: Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	Has anyone attempted to complete the Form 8910 for the tax credit yet? I know it's the 2005 form but the Draft 2006 form on the IRS website has very few changes as of now. I was fine with the from 8910 until you get to line 16 which asks you to complete form 6251 (AMT) and fill in your tentative minimum tax from line 33. I completed the AMT form and from what I understand if after your charitable deductions if you have a taxable income higher than $42,500 for singles and head of household, $62,550 for married joint filers or $31,275 for married separated filers you will have a tentative minimum tax and that will reduce the amount of Prius tax credit you can claim. I have not seen anything written stating there is an income limit for the tax credit. I called the IRS (1-800-829-1040) today and spoke with Ms. Huang #28-54051. She went over my form with me and in the end agreed that something did not ring true. It appears one is going to be able to get the credit and then BAM they add the tentative minimum tax to the equation and bye bye tax credit. For me my tentative minimum tax is $770 less then my regular tax due prior to any credits. I have a $0 for the Alternative minimum tax. We are no way near the income limits for anything else tax wise that I have come across. I just don't understand! My question is, Does anyone know if the original Energy Policy Act of 2005 says anything about an income limit? The IRS agent left it that she would try to look into this further and would call me if she finds that their will be any more changes to the 2006 form 8910. I would love to hear what others have learned as I am a bit frustrated to think we may loose this $3,150 credit.

01-16-2007, 10:07 PM	#2
JimN Certified Prius Advisor Join Date: Nov 2006 Location: South Jersey Posts: 2,199 My Car: 2006 Prius Package: #3 Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	Welcome to the site. I believe you hold the record for trying to get your taxes done the earliest. The rest of us are waiting for the correct form to be posted. Hopefully the only change will be the year in the corner. If you are not subject to the AMT then I don't see how the credit can be reduced. Last spring/summer when I was looking for the credit I read through something official. The entire text dealt with the vehicle--no mention of income limits. This month I'm getting the 1099MISC forms in the mail. Next month hopefully the form will be updated and I'll be ready to take a serious look at this. __________________ 2006 Magnetic Gray "Spirit Queen" TP 45, Blocked grill, Toyota rear bumper applique, VentureShield panels: Hood, bumper & headlights 2000 Intrigue "Lil Deuce Coupe" 1999 EV-1 Range 220 miles 2000 Precept diesel-electric hybrid 80mpg The reason I own a Prius. Thank you, GM.

01-17-2007, 11:47 AM	#6
4chi Member Join Date: Aug 2006 Posts: 79 My Car: Package: Nominated 0 Times in 0 Posts TOTM Awards: 0 Friends: 0	You don't have to be subject to AMT to lose the full credit. As I understand it, TMT is less than AMT. I think there was a very good post about the difference between AMT and TMT sometime back, I'll see if I can locate it. If you have the stomach for it, read this thread: tmt And I don't think this is going to be changed on the final form...I think that is just the way this credit works.