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Can 2006 purchase be claimed on 2007 taxes?

Discussion in 'Prius Tax Credit Discussion' started by njamhour, Apr 16, 2007.

  1. njamhour

    njamhour New Member

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    everyone. I've been a lurker on these boards but am now coming out of the woodwork to ask about the notorious Hybrid Vehicle Non-Credit.

    First, some background:

    My husband and I were severely affected by Hurricane Katrina. We lost all the contents in the house that we were renting at the time, and our insurance did not pay anywhere near the amount that we had lost. We also lost both our vehicles, for which our auto insurance paid pretty fairly. Once we got our checks from Liberty Mutual, we decided we would buy a used small SUV for hauling around equipment to be used in rebuilding our home (we're buying the same house we were renting from my father before the storm) and my husband's business, and ordered a 2006 Prius, which we actually purchased in January 2006 (time-wise, we would have been eligible for the full credit). "Doing the right thing" was my main motivation for wanting a Prius, but my husband's was the fuel savings and tax credit. :)

    As it turned out, my husband's business took very long to reopen, and he had no income until December. Meanwhile, I was employed in a predoctoral internship program at a VA hospital (I started the program 2 weeks before Katrina hit), and my income was next to nothing. Basically, we were living on our savings all year.

    So, now, as we try to do our taxes (and, BTW, I didn't wait this long to file out of procrastination, but rather because the VA had never sent my W-2, and after many, many phone calls, only on Friday did I learn they had been sending my forms to an address that does not even exist), I find out that we cannot receive the credit because we did not earn enough or withhold enough tax to receive the credit in the first place. Furthermore, the "Why the difference?" pop-up on TurboTax indicates that this credit does not carry over to next year's taxes.

    Now, this year (2007), I have a lovely consulting contract with a large corporation, my husband's business is (knock on wood!) picking up, and I anticipate owing the IRS big-time next year.

    So, here's my question:

    Is there any way that I can wait until next year to claim my credit? Or is there any other creative way to take advantage of the credit?

    I have come to terms with the idea of not getting the $3150 or whatever, and I certainly don't want to cheat on my taxes. However, if there is any way to work around the issue, I'd love to learn about it! TIA for your advice.
     
  2. JimN

    JimN Let the games begin!

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    <div class='quotetop'>QUOTE(njamhour @ Apr 16 2007, 06:16 PM) [snapback]424295[/snapback]</div>
    Welcome to the site. I am sorry to hear of your trials. Withholding has nothing to do with the hybrid credit. The credit can only be applied to 2006 tax liability.
     
  3. NoMoShocks

    NoMoShocks Electrical Engineer

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    Do they still have income averaging? If so, you might be able to submit a revised 2006 return in 2009 where you average your income for 2006, 2007, 2008 and 2009. I probably have no idea what I am talking about, but it seems like it would be worth checking with a CPA. Not H&R Block or similar discount service. They train just about anyone for six weeks to do your taxes, and I wouldn't trust them at all.
     
  4. Kurtiosity

    Kurtiosity New Member

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    I believe you can file an amended tax return for 2006. Check with a CPA about that.
     
  5. JimN

    JimN Let the games begin!

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    <div class='quotetop'>QUOTE(NoMoShocks @ Apr 16 2007, 08:47 PM) [snapback]424363[/snapback]</div>
    Doing a quick search at www.irs.gov it appears income averaging is available only to farmers and fishermen. Certain payments upon retirement can also be averaged.

    <div class='quotetop'>QUOTE(Kurtiosity @ Apr 16 2007, 11:34 PM) [snapback]424456[/snapback]</div>
    What can they amend? Wages can't be shifted to another year.

    I suppose one could defer some business expenses to make 2006 look more profitable but this is not what the OP wants to do.