2006 Tax Credit forms

Has anyone attempted to complete the Form 8910 for the tax credit yet? I know it's the 2005 form but the Draft 2006 form on the IRS website has very few changes as of now.

I was fine with the from 8910 until you get to line 16 which asks you to complete form 6251 (AMT) and fill in your tentative minimum tax from line 33. I completed the AMT form and from what I understand if after your charitable deductions if you have a taxable income higher than $42,500 for singles and head of household, $62,550 for married joint filers or $31,275 for married separated filers you will have a tentative minimum tax and that will reduce the amount of Prius tax credit you can claim.

I have not seen anything written stating there is an income limit for the tax credit. I called the IRS (1-800-829-1040) today and spoke with Ms. Huang #28-54051. She went over my form with me and in the end agreed that something did not ring true. It appears one is going to be able to get the credit and then BAM they add the tentative minimum tax to the equation and bye bye tax credit. For me my tentative minimum tax is $770 less then my regular tax due prior to any credits. I have a $0 for the Alternative minimum tax. We are no way near the income limits for anything else tax wise that I have come across. I just don't understand!

My question is, Does anyone know if the original Energy Policy Act of 2005 says anything about an income limit?

The IRS agent left it that she would try to look into this further and would call me if she finds that their will be any more changes to the 2006 form 8910.

I would love to hear what others have learned as I am a bit frustrated to think we may loose this $3,150 credit.

 

<div class='quotetop'>QUOTE(JimN @ Jan 16 2007, 10:07 PM) [snapback]376605[/snapback]</div>

Jim-
Thanks, I was hoping I would win some sort of prize. I am still waiting on some paperwork but I'd say my numbers are 99% correct.
We are not subject to AMT but the 2005 and draft 2006 form 8910 use the tentative minimum tax from the AMT form and that you will have if you have more income (after your charitable giving) than the exemption amount on the AMT form. It does not make sense and that is why I am trying to make sure people know about it. I am hoping the IRS will make that change on the draft form. I have emailed the IRS draft forms people and HybridCars.com about it in the hopes that the more people who realize it the more chance for a correction to be made before the 2006 form is finalized.
I'd take a ball park look at it early if I were you.
Thanks