Hello and thank you...

Welcome and congrats!

I imagine at 40k miles per year, this car will save you a few bucks.

 

Hello and Welcome,

Good for you for your intelligent, economical, environmentally responsible and... dare I say it... downright cool vehicular choice.

Welcome to the wonderful Prius Family. As a sage owner of some 18 days now, I can say with assurance that you will love your car each day more and more. Oh, and don't forget to get the tax credit information so that you will have everything ready for your 2005 year filing. The $2000 federal credit will diminish to $500 in 2006.

Take care,

Tisza

Millenium Silver '05, Pkg. #3, 49.8 MPG @ 900 on ODO
Silver door edge guards, Custom painted mudflaps
"Because He loves Me, that's why..."
"Prius, the ultimate in Geek Bling"

 

Welcome.
I am somwhat new too. I was new, posted a few times, but had to reregister due to the site crash. So I'm new again!

Widdletink, what do you mean by getting the info ready for the tax return?
What exactly do you have to get? Can't you just list it as an exemption or do you have to attach paperwork to your return?

 

Welcome (back) to you both.

There is nothing to attach for the deduction. Next year you will write the words "Clean Fuel" on the next to last line of the front side of the Form 1040. This year it is line 35 but you just got your Prius so you will do this next year. The column on the right of those words will contain the wonderful number 2000. so your adjusted gross income (the number at the bottom of the front side and top of the back side of the 1040) will drop by 2000 dollars.

You are expected to retain paperwork such as which clean fuel vehicle you bought and when. No problem there. It would also be a good idea to go to Toyota's website and print two letters.

One letter is from the IRS saying the 2005 Prius is a clean fuel vehicle. This was issued around October of 2004.

The other letter is from Toyota estimating the cost of making the Prius a clean fuel vehicle is more than 2000 dollars. As I said, just hang on to those letters. [Though I enclosed them with my 1040 because I know they like to ask for papers I'm not required to provide. ] :wink:

 

Congrats, Indy! Here's 25 points! Buy yourself something nice.

 

Welcome Indy!!

Widdletink is absolutley right - I've owned my 2004 Prius now for 358 days (coming up shortly on a full year), and I still find it grows on me.

Swallowing the lies and buying into them, as your friend seems to do, certainly has it's draws - as they say, 'ignorance is bliss' - but by being someone who not only recognizes the greed and corruption and irony in the system, but works to fight it, is truly a gem in the rough. Enjoy your near-emissionless, near-guilt free ride once it arrives.

-m.

 

Welcome Indy to PriusChat.

you will find the people here as varied and knowledgeable as anything you will encounter in life.

you will most likely also realize (especially for you) that the Prius maybe one of the best decisions you have ever made.

the benefits of ownership go beyond gas mileage and money.

Driving a Prius puts one into a different state of mind. with your schedule, im sure you spend most of your day in a high state of stress especially when dealing with traffic and meeting appointment times. i found that i no longer stress over being late and although i no longer bob and weave through traffic, i am no later than i was before and am much calmer.

the lack of vibration and noise along with a more than adequate stereo system makes driving a desirable thing again for me. this is a feeling i havent felt since i was about 22 years old.

well im babbling....sorry... its the car. it creates giddiness in people who long ago have relegated undesirable routine tasks like driving to the category of "get it over with as soon as possible"

although most wont admit it, you may find yourself creating reasons to go somewhere in your Prius. it may not be as noticable for you since driving is such a large part of your job... but for me who works less than 8 miles away, this past summer was one planned trip after another using the excuse that Western WA has so much to see that i have not seen lately or at all.

Driving this car may not make you feel 16 again, but for me, it was about as close as ive been in years.

 

It is not a tax credit. It is a tax deduction.

A credit will save you the actual amount of the credit from your tax liability. A deduction reduces your taxable income, which in turns saves you the tax payment you would have owed on the top $2,000 of your income. For most folks the net savings is in the $600 range.

 

In an earlier post I mentioned the paperwork is available on Toyota's website. Of course it is also in the PriusChat topic in the File Library called "2005 Prius Federal Tax Deduction Documentation."

As I understand it, the actual reduction in your Adjusted Gross Income is $2000. Then you have 2000 less on which you are taxed. Up to a certain point you are probably in the 25% tax bracket and so the tax you pay will be $500 lower (25% of 2000). I'm oversimplifying and you should not take this to be the final tax instructions. You get to read those yourself. At least it will be rewarding in some way.

 

Well said Indy
Good luck