How Do I File To Get The 2005 Tax Benefit?

Few things to note here:

It is not a credit, it is a deduction. You will not get $2000 in your pocket. Based on your tax bracket, you will get somewhere around $600 +/- 100 roughly.

You ask for it when you file your 2005 income tax forms. I used turbotax, so not sure where it landed exactly on my form, suppose it is Schedule A -- Itemized Deductions where it gets filled in.

You don't turn in anything except for the tax forms. In case you are audited, have a copy of the receipt on hand showing the date that you purchased the car. You also need to claim that you are the original owner, and use it for personal, not business, reasons.

 

Check this out...it shows you how to deduct:

http://www.fueleconomy.gov/feg/tax_afv.shtml

 

Using Taxcut software mine is equating to $500.00

 

if you use turbotax, just do a search for 'hybrid vehicle' - it will plug the info in for you - no documentation required afaik...

i bought two hybrids this year & it allowed me to take a $4000 deduction (not credit... see above... BIG difference) - turbotax asked me for the type of car i purchased - i put in prius, then it asked me how many i purchased... i said two, yet it didn't ask me for make & model on the second vehicle (?) - not sure what's up w/ that.