Prius tax credit

[bgate123]

Hi,

I need your help. I bought my prius in March 2006. I am not sure if I qualify for the full amount of $3150. I went to H&R Block and the tax guy told me the I only get back $1400. My income last year is $24000 and I am not really sure that the tax associate at H&R Block know how to do it Can someone help me? Thank you

[MrK]

<div class='quotetop'>QUOTE(bgate123 @ Mar 21 2007, 11:53 AM) [snapback]409644[/snapback]</div>

Hi,

I need your help. I bought my prius in March 2006. I am not sure if I qualify for the full amount of $3150. I went to H&R Block and the tax guy told me the I only get back $1400. My income last year is $24000 and I am not really sure that the tax associate at H&R Block know how to do it Can someone help me? Thank you
[/b]

March '06 qualifies for the whole $3,150. The first "gottcha" is that you can't have a greater credit than you owe in taxes. I'll bet your taxes owed only amounted to the $1,400 which will be offset by the credit.

The other "gottcha" is the Alternative Minimum Tax (ATM). You have to figure it, even if you don't owe it. If, for instance, your regular tax bill was say, $2,500 and the tax you'd owe on the ATM form was $1,500, then the most credit you could receive is the difference between the ATM number and your actual tax number, or in this example: $1,000.

This is why my dealer told me to consult my tax advisor when I asked about the tax credit. Oh, I took delivery in Apirl '06. I've logged 27,000 miles with lifetime MPG of 47.4.

[MarkMN]

It sounds most likely (and very probable) that your tax before credits is only 1400 dollars. On your tax form 1040, make sure that line 57 is zero, if it isn't, than something is probably wrong.

Also, you don't make enough to have to calculate your Alternative Minimum tax - don't worry about it, but if you need verification, just fill out the table on page 39 of the 1040 instructions.

Make sure to get your telephone tax credit on line 71, a lot of HRBlock tax idiots miss it.

[bgate123]

<div class='quotetop'>QUOTE(MarkMN @ Mar 21 2007, 03:29 PM) [snapback]409715[/snapback]</div>

It sounds most likely (and very probable) that your tax before credits is only 1400 dollars. On your tax form 1040, make sure that line 57 is zero, if it isn't, than something is probably wrong.

Also, you don't make enough to have to calculate your Alternative Minimum tax - don't worry about it, but if you need verification, just fill out the table on page 39 of the 1040 instructions.

Make sure to get your telephone tax credit on line 71, a lot of HRBlock tax idiots miss it.
[/b]

You are right. HRBlock people don't know much b/c I had to remind them about my prius credit and they had to look up books and scramble around to find answer. I feel bad, I should not have gone to HRBlock. I should have done it myself. They charged me over $200 to do my returns....suck Would not recommend it.

[MarkMN]

<div class='quotetop'>QUOTE(bgate123 @ Mar 21 2007, 03:06 PM) [snapback]409737[/snapback]</div>

You are right. HRBlock people don't know much b/c I had to remind them about my prius credit and they had to look up books and scramble around to find answer. I feel bad, I should not have gone to HRBlock. I should have done it myself. They charged me over $200 to do my returns....suck Would not recommend it.
[/b]

Don't feel too bad. A lot of people use tax assistance in some form who probably don't need it. HR Block and other tax places are very hasty in filling out tax paperwork and they usually aren't familiar enough about a lot of the tax code (which gets complicated and confusing for anyone, but from I read on the news and hear from friends I swear a good third of the taxpeople there are downright idiots). They are there to make a profit and can probably be a big help to many people, but I think that they also take advantage of most people's fear of the IRS.

I look forward to getting my tax credit next year, except that I already adjusted my withholding to account for it.... :P

[bgate123]

<div class='quotetop'>QUOTE(MarkMN @ Mar 21 2007, 04:28 PM) [snapback]409757[/snapback]</div>

Don't feel too bad. A lot of people use tax assistance in some form who probably don't need it. HR Block and other tax places are very hasty in filling out tax paperwork and they usually aren't familiar enough about a lot of the tax code (which gets complicated and confusing for anyone, but from I read on the news and hear from friends I swear a good third of the taxpeople there are downright idiots). They are there to make a profit and can probably be a big help to many people, but I think that they also take advantage of most people's fear of the IRS.

I look forward to getting my tax credit next year, except that I already adjusted my withholding to account for it.... :P
[/b]

Does anyone know what happen if I lost my job and not able to paid off my prius? Can I sell the prius after getting my tax return.

[JimN]

<div class='quotetop'>QUOTE(bgate123 @ Mar 21 2007, 12:53 PM) [snapback]409644[/snapback]</div>

Hi,

I need your help. I bought my prius in March 2006. I am not sure if I qualify for the full amount of $3150. I went to H&R Block and the tax guy told me the I only get back $1400. My income last year is $24000 and I am not really sure that the tax associate at H&R Block know how to do it Can someone help me? Thank you
[/b]

Bgate, welcome to the site. You aren't the 1st one here describing an experience with H&R Blockhead. If your taxable income (line 43 on the 1040) is $24000 the most your tax liability can be is $3226. The hybrid credit is listed along with other credits on lines 47-55. Entries here will at least almost always reduce the hybrid credit.

You MUST complete Form 6251 (AMT) to use Form 8910 (Hybrid credit).

Some married posters increased the amount of their credit by filing seperately. Download the free software from www.taxact.com, plug in your numbers and see if it comes up with the same amount for the credit.

BTW did you also take the credit on line 71?


<div class='quotetop'>QUOTE(bgate123 @ Mar 21 2007, 03:57 PM) [snapback]409773[/snapback]</div>

Does anyone know what happen if I lost my job and not able to paid off my prius? Can I sell the prius after getting my tax return.
[/b]

You can sell your car anytime you want. At the present there is no recapture mechanism for the credit which means you don't have to pay it back.