2006 Tax Credit

[elmofongo]

I got $0 (zero).
I bought my Prius in Feb 2006.
My AMT was $3,200 which blew away the entire $3,150 I was originally qualified for.
Oh well, good thing the tax credit was not the only reason I bought it for.

-Adriano

[JJay]

We bought two Prius last year, in March and July.
Of the $6150 we still got a credit of about $5800.
Not the best, but we were happy about it!

[pgoldberg]

We got about 1/2 the credit of 3150 on our April 06 Prius. Worked out better than I expected, the AMT trap is not Toyota's fault nor is it an attempt to cause us not to get the benefit of the credit in this one case.

It is a RIP OFF by our legislators who have failed to adjust it to account for inflation over the past decade. It was designed to prevent the wealthy from not paying taxes, but what was wealthy when it is first implemented is now moderate means. In order to fix it they would have to increase the tax on the most wealthy portion of our country, those who have benefited from the current administration's tax cuts and who contribute mightly to re elect those who scratch their backs.

By the way I love my fully loaded bright red car. Had it shortened about 6 inches in December, but the collision shop and my dealer fully restored it to like new condition. It then sat for two months while we traveled the US in our motor home. All I did was turn off the smart key. Upon returning home I turned the key back on and drove off.

xctraveler

[fshagan]

<div class='quotetop'>QUOTE(xctraveler @ Apr 17 2007, 04:16 PM) [snapback]424971[/snapback]</div>

We got about 1/2 the credit of 3150 on our April 06 Prius. Worked out better than I expected, the AMT trap is not Toyota's fault nor is it an attempt to cause us not to get the benefit of the credit in this one case.

It is a RIP OFF by our legislators who have failed to adjust it to account for inflation over the past decade. It was designed to prevent the wealthy from not paying taxes, but what was wealthy when it is first implemented is now moderate means. In order to fix it they would have to increase the tax on the most wealthy portion of our country, those who have benefited from the current administration's tax cuts and who contribute mightly to re elect those who scratch their backs.

By the way I love my fully loaded bright red car. Had it shortened about 6 inches in December, but the collision shop and my dealer fully restored it to like new condition. It then sat for two months while we traveled the US in our motor home. All I did was turn off the smart key. Upon returning home I turned the key back on and drove off.

xctraveler
[/b]

You have to be in the top half or so of wage earners to trigger the AMT, and most of the people complaining about it are those that are really in the top 20% ... above about $88,000 "household" (combined) income. Its a complex tax scheme that the Republicans tried to do away with, but were blocked. Only a few million tax payers pay it now, but that will grow to a lot more if it isn't fixed.

The AMT says you should pay about 28% of your income in income taxes because you are among the wealthiest of wage earners. It isn't indexed to inflation, but I'll bet the people complaining here earn more than the median household (combined) income of about $50,000.

Like the phrase from Sixth Sense: "I see rich people. Some of them don't even know they are rich."

[Henry V]

Just to be clear. Many of us that lost all or part of our supposed "credit" ARE NOT subject to the AMT on our taxes.

The AMT only comes into play because you use the AMT worksheet to calculate your "tentative minimum tax" (line 16) on the hybrid credit form.

Legislators need to hear from us all.

I wonder if all the oil companies with net profits in the tens of billions last year have to factor in their "tentative minimum tax" when they get their tax incentives????

[Swingshiftworker]

100% Tax Credit ($3150) and the CA HOV stickers made this a GREAT buy in 2006! I love my Prius, but I also love my other gas guzzling cars too, but none of them have saved me any money. Only the Prius has done that!

[ystasino]

So I purchased the Prius recently and I'm wondering if I'll be eligible for the $787 tax credit. I'm clueless when it comes to taxes but earn (filing taxes as single) nowhere near $88k. Under what circumstances will I be unable to claim my $787 back in my 2007 1040 form?

Thanks

[JimN]

<div class='quotetop'>QUOTE(ystasino @ May 14 2007, 05:28 PM) [snapback]441968[/snapback]</div>

So I purchased the Prius recently and I'm wondering if I'll be eligible for the $787 tax credit. I'm clueless when it comes to taxes but earn (filing taxes as single) nowhere near $88k. Under what circumstances will I be unable to claim my $787 back in my 2007 1040 form?

Thanks
[/b]

The best estimate is to use your 2006 tax software and plug in your expected 2007 figures (or just use 2006's). If you need free software go to www.taxact.com. The Cliff's Notes answer is to look on page 2 of the 1040. There is an indented section of other credits. If you have amounts there you probably won't get the full credit. If you search for threads dated Feb. to April containing 8910 or my logon you should be able to find a wealth of useful information (and not just from me).

[bhwithun]

I was a little disappointed by the rules of the tax credit. I wish I had known about the rules ahead of time. I surely would have still purchased the vehicle but I would not have carried the anticipation of a tax credit for so long.

Of the 3150, I got somewhere in the neighborhood of $700.

The reason I did not get the rest is because I have childcare expenses and mortgage interest. They pretty much wiped out most of the credit. Do any of you who got 100% have kids in daycare and/or a mortgage? Maybe I just need a more clever tax professional...

I wrote to my US congressperson about it but the reply I got back was a form letter about how he supports our troops and is fighting terrorism. I think I triggered an auto responder when I wrote "gas" or "economy." I wish I felt more represented in this republic.

On the plus side, though, as gas prices climb ever higher I am ever moreso on the winning end of the deal. I love my prius. 25,000 miles. Averaging 52.2mpg. I figure fuel savings alone is paying a quarter of my car payment.

Brian Herbert Withun

[JimN]

No kids. No mortgage.

Brian, if you filed a joint return did you try filing seperately and splitting the deductions & credits? This may take some playing around with the numbers.