Just did my taxes on-line with TurboTax. Sure was nice to get that tax credit for my 2006 front wheel drive.

 

I just used TurboTax too, and found that I am only getting about 60% of the credit.

Appearntly, the total of all credits (hybrid, home energy upgrades, child, etc, etc, etc) can not be more that the difference between the taxes you pay, and the taxes you might have paid under AMT. TurboTax, therefore, has to do the AMT calculation for you, find that difference, and max out your total credits to that amount.

What a bummer.

 

What version are y'all using? My TT says that the forms won't be released until 16 Feb so I cannot continue until the update is out.
Clif

 

Duc -
I have the same message from TT....but that hasn't prevented it from calculating the credit per the formula Walt describes and is outlined on Form 8910. Don't know what TT is waiting for to release their electronic version of 8910.

 

About a week ago, TT would not allow you to do anything in terms of the hybrid credit. If you tried, it would give you a message and you had to cancel that dialog.

As of yesterday, a new TT update allows you to tentatively calculate it, even though the IRS still hasn't released the actual form yet. That is what I did, and was shocked that the total of all the credits I was hoping to get, exceeded the max I am allowed.

 

Thanks for the replies, I tried and it worked. Sweet!
Clif

 

Weird, I am using TaxCut and from viewing the gov's website about qualifying deductions it looks like a 2007 AWD still qualifies for the full $1950 credit. What am I missing?

Noel

 

It's not what the car qualifies for. It is what YOU qualify for.
That is what you are missing.

Don't cry too hard... I got just $400 from the FED for my 2005.
-John

 

If my Tax liability is 12,600 then I would take the 2,600 off for a 2007 FEH and owe 10,000, right?

 

No, you need to calculate your AMT liability too, even if you otherwise aren't required to pay the AMT. That's yet another form.

If, for example, your AMT is $11,600, the maximum tax credit would be $1,000 (your tax liability of $12,600 minus the AMT). So, instead of the full $2,600 hybrid credit, your hybrid credit would be reduced down to just that $1,000.

Basically, the hybrid tax credit can't reduced your tax liability to below your AMT (alternative minimum tax).

Bummer, isn't it?