PriusChat Forums  

 
Spy
Go Back   PriusChat > Toyota Prius Forums > Prius Main Forum > Prius Tax Credit Discussion

Prius Tax Credit Discussion This is a discussion on tax credit question within the Prius Tax Credit Discussion forums, part of the Prius Main Forum category; if someone on low income purchases a prius and files for the 2007 tax credit.. say you owe the irs ...


Reply
 
LinkBack Thread Tools
Old 05-16-2007, 06:08 AM   #1
rigormortis
Senior Member
 
Join Date: Feb 2007
Location: san jose, ca
Posts: 1,175
My Car: 2007 Prius
Package: #5 Touring
Nominated 0 Times in 0 Posts
TOTM Awards: 0
Friends: 1
Default

if someone on low income purchases a prius and files for the 2007 tax credit..

say you owe the irs 1100.00 for the year and you had 1200.00 withheld, the irs refunds you $100

what happens with the tax credit ?? do you get your 1100.00 back? (or whatever the hybrid
tax break was @ time of purchase)

or does the hybrid refund only cover if you owe taxes
rigormortis is offline  
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
Sponsored Links
Old 05-16-2007, 11:48 PM   #2
JimN
Certified Prius Advisor
 
JimN's Avatar
 
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
Default

[quote=rigormortis @ May 16 2007, 05:08 AM) [snapback]443181[/snapback]</div>
Quote:
if someone on low income purchases a prius and files for the 2007 tax credit..

say you owe the irs 1100.00 for the year and you had 1200.00 withheld, the irs refunds you $100

what happens with the tax credit ?? do you get your 1100.00 back? (or whatever the hybrid
tax break was] time of purchase)

or does the hybrid refund only cover if you owe taxes
[/b]
Your question is too general to properly answer as not all income, deductions, and credits are treated equally.

Your tax liability of $1100 is what needs to be paid. It doesn't matter if it is paid with a credit, throughout the year via payroll deductions, or with the 1040 form at the end of the year. The best case is that your liability is $1100 before the credit less $787.50 credit for a net liability of $312.50. With $1200 paid throughout the year a refund of $887.50 would be due.

Now, here is where the devil is in the details. It makes a BIG difference in how that $1100 final liability was arrived at. There is a TMT (Tentative Minimum Tax) that must be paid. As many have discovered after the fact, the hybrid credit can be partially or entirely lost if you claim certain other credits. Child care credits are popular. Perhaps the earned income credit will also have an effect (I don't know for sure.)

As an estimate, plug your expected 2007 amounts into your 2006 tax software and see what happens. If you need free software check out www.taxact.com.
__________________
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.
JimN is offline  
Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!
Reply With Quote
Reply

Bookmarks

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On
Forum Jump

Similar Threads
Thread Thread Starter Forum Replies Last Post
tax credit question stevenll Prius Main Forum 3 11-13-2007 10:26 AM
Tax credit question... yarzy Prius Main Forum 13 08-30-2006 09:52 PM
Tax Credit Question janrn Prius and Hybrid News 9 01-16-2006 10:25 PM
Another Tax Credit Question Catskillguy Prius Main Forum 9 01-12-2006 01:32 AM
Question on tax credit Jeff1971 Prius Main Forum 2 12-08-2005 12:24 PM


All times are GMT -5. The time now is 02:49 PM.


Find us on Facebook!
Powered by vBulletin®
Copyright ©2000 - 2008, Jelsoft Enterprises Ltd.
Content Relevant URLs by vBSEO 3.2.0