$3100 Prius tax credit question.

You know, there are alot of terrible and difficult circumstances, and we can't fix them all.

Is there wasteful spending & stupid programs? Absolutely... That example about the lawyer is one, if it's factual (I imagine it was gleaned from a news report)... I'll throw a log on your fire... how about the howeowners in flood areas that get the Fed Govt through flood insurance to pay for rebuilding over & over. I say once, maybe twice, then it's I will move you or it's YOUR risk... While some poor person, who can't afford the premium is S O L when they get flooded even once.

Hey, I think it's great you care for this person... I hope things work out. BUT, we can't pay for everyone... We can't solve the age of the cars with tax dollars.
If you think the Prius Tax Incentive is unfair, then that is your opinion and you have many who agree. Maybe the Tax incentive should be a credit, no matter what your liability. Just like the EIC, I woud have no problem. That would've been a good arguement... don't attack the person.

Peace? B)

By the way, as much as I love the Hudson Valley, I still think the most beautiful area I ever visted was when I was in Seattle in 1989 for the 1989 Final Four.

 

areas prone to flooding i definitely have to question the sanity of the people who continue to live there... but most of the relief is in the form of low interest loans at least from what i know of it which is not very much to be honest.

the FEMA thing was from a post i made search for FEMA to read about that waste.

as much as i want to see everyone reducing their energy usage, i wonder if what we are doing will matter. saw on CNN that in less than a decade, china will be the #1 consumer of energy. currently, the country has hundreds of power plants in various stages of building...

 

yea. China is just plain scary... on more ways than one.
and Florida is supposed to be in a 10 - 15 year cycle of hurricaines...... I wonder how much that will cost over the years?

I agree, bailing people out over and over is the definition of insanity..... which is doing the same thing over and over expecting different results.

 

Hijacked thread.
Can't y'all keep the political wrangling be in FHOP?

 

oh oh...ummm...ahhh shoot!!

guilty as charged your honor...

 

Oops. Pardon my grammar. :blink:
I just reread my post.
(I'd been messing with the wording at the last moment.)
Guess I should reread before posting.

 

:huh: Ok.. I promise to be good

 

No problem, my friend.

 

Ok..he's gone now... .. now what were you saying Dave? h34r:






.... just kidding! :lol:

 

pfft


:lol:

 

Right you are

This was about the Tax Credit.

 

If it works like it does in Colorado, where they already have a hybrid tax credit, you will only be able to use it to offset your current tax bill. However, if the computed hybrid credit exceeds the tax liability, they let you carryover any excess to next year.

 

Sorry.
The federal tax credit is not a "refundable" tax credit.
It will not reduce your tax liability below your alternate minimum tax (AMT) liability and no part of it can be carried over to any other year.

 

Just making sure. I assume the child tax credits are "refundable." But that they are taken before your tax liability is calculated? So I can't take the non-refundable Prius tax credit first, and then actually get a refund from the child tax credits.

How much are the child tax credits next year, anyway?

 

Looks like a bad assumption (mostly):

 

Hi everyone. I've actually just published two really great articles. Here's a blog explaining all the questions people have been asking about the tax credit.

And here's a detailed article on the hybrid tax credit.

Actually, PWC didn't participate in the discussions. I talked to the good people over at CCH, and some really helpful people at the IRS.

Bottom line: there's some pros and cons to the new tax law, and a lot of the grey areas people have been asking about will not be ironed out until after the IRS issues regulations.

In the meantime, I provide a sure-fire tax strategy that's completely legal. Consider it a Christmas present.

William
taxes.about.com

 

As long as you are not on the AMT (Alternative Minimum Tax) bracket, the return amount (tax paid or tax owed) is changed by a direct PAY OUT by Uncle Sam, or a REDUCTION. This means if you OWE $0, YOU GET BACK $3150, and if you owe $2000, you get back $1250. If you have paid NO TAXES, due to low income, or other deductions, YOU STILL GET A REDUCTION or in this case a RETURN of $3150. That is what I understand about all this.

 

Your talking about the amouts of refunds? I think that this has been discussed...if a person's tax liability is less than the hybrid credit, you only get back the taxes you paid, not any extra.

 

That is not correct. The tax credits for the energy bill just passed do not reduce your taxes below zero. If you did not pay any income tax, you cannot get any money back. If you paid in income tax through withholding or quarterly payments, and the tax credit reduces your total tax bill below what you have paid in, then you would get money back. That is the situation for most middle income tax payers, but not for the retired (who may not have paid in any income tax or owe any) or those that have an AMT amount that kicks in.

As far as I know, there are two tax credits that will pay you money back even if you haven't paid (i.e., reduce your taxes below zero), and those are the Earned Income Credit and Child Care Credit. There might be others, but the credits from the Energy Bill of 2006 are not in that class.

 

My wife and I purchased a 2006 Prius in Jan 2006. We are currently preparing our taxes (via TaxCut). I understand that we should get a $3150 credit for the Prius. However, the credit summary after everything is entered is $2389. On the top of the page there is a statement that reads "Your calculated credits are often less than the amounts you have entered"

For those who are preparing their tax forms now, are you also encountering this difference? Can someone please explain to me why it should be different?

Thank you in advance,

Nemie

P.S. This is my first post for anything, so I apologize in advance if I am failing to follow protocol.