Re: No Hybrid Tax Credit with AMT
 

On my '05 FEH I got a "deduction" (that's all that existed at the time). I did get the full deduction. My '06 Prius qualified for the "credit" -- but it turns out I only got a partial credit. How much is debateable since the first credit/deduction my accountant entered was the hybrid credit and I already hit the limit. Had we entered my other expenses first then the credit would have been substantially less.

The advertisements I've seen usually don't bother to mention the credit *or* if they mention it they say "you may qualify.... talk to your financial advisor...". My dealer knew there was a credit but didn't know any of the details and certainly didn't "hype" it as a motivator for the sale. I don't blame them for bait & switch.

At the federal level, however, most people are closer to AMT than they realize. Don't be sucked into the false sense of security that just because you may not have paid AMT this year means you have nothing to worry about. Considering that when it was created it was never supposed to affect ANYONE other than the 155 richest people who were paying either no taxes or next to no taxes -- and while we certainly envisioned that more people would be added to the list, we never dreamed that it would be affecting middle-income homes. If you aren't paying it this year, don't feel hurt or left out of the fun -- you soon will be enjoying paying AMT along with the rest of us.

The federal incentives are hollow. They might as well have passed legislation to give everyone a million dollar tax credit for all hybrids. We wouldn't get that credit either but at least it sounds better. =)

Re: No Hybrid Tax Credit with AMT
 

Hi Tim,
I also have a 2006 Ford Escape Hybrid 4WD and wondering if I'm entitled to the full $1,950 credit on this year's Federal Income Tax return ,I understand the following: you have to complete IRS Form 8910 - from that form, you have to complete IRS Form 6251 AMT to see if you owe additional tax and if you can take the full credit or a portion thereof. To me, it sounds like a catch 22 situation. My question is, in trying to figure this out myself, is there SOME INCOME LIMITS(AGI) that gets you the full $1,950 tax credit. I know this year, the AMT exemption has been increased to $62,550. This may not be a question for this site. I'm asking because I figure you know the answer.
Ed

Re: No Hybrid Tax Credit with AMT
 

You don't have to pay the AMT. Well, probably.

You only need to calculate what your AMT might have been, in order to establish what would be the MINMUM total income tax you can pay. You can figure out your tax normally (1040 line 44), and start to subtract off all the credits you are allowed, including your Hybrid credit (1040 line 56). However, you have to STOP subtracting off credits if the remaining tax you owe (1040 line 57), drops below that MINUMIM income tax you figured using the AMT form (6251 line 33).

So, there are way too many personal factors for anyone to guess, ahead of time, if you will be able to get the full Hybrid credit or not.

Re: No Hybrid Tax Credit with AMT
 

The AMT is a travesty passed because some number of millionaires (less than 20) managed to find ways to pay no tax at all. Inflation has made more and more people subject to AMT, screwing them. It is a inflation-based tax increase, suported by both political parties. When they say they're for "tax cuts" ask them when they're going to close the AMT down..

Yes, I got no tax credit for my hybrid.:angry: That doesn't make me bitter, though. :)

Re: No Hybrid Tax Credit with AMT
 

In all my years, I have yet to actually see a "tax cut". :angry:

I have seen less of an increase. I have seen tax shifts. But never an actual cut where I paid less in total taxes, than I did before.

Re: No Hybrid Tax Credit with AMT
 

Therein lies the problem, you and I don't make enough money. Here's an interesting look at the most recent "cuts".

http://www.ctj.org/html/gwb0602.htm

Re: No Hybrid Tax Credit with AMT
 

I did not get the credit either for my toyota highlander. The salesman told me nothing about possibility not getting the credit. If there is any lawyer wants to bring a class action lawsuit, I will participate.

No Hybrid Tax Credit with AMT
 

I would love to be part of a class action suit against the car manufactures for fraudulent marketing. If there is an attorney who wants to handle this case on contingency send me a message.

Re: No Hybrid Tax Credit with AMT
 

It's not the dealer's fault, nor the car manufacturer's. It is YOUR fault.

Trust me on this. All the dealers and manufacturers have done their homework and have covered all bases. You are the one who did not do your homework.

You will never get any lawsuit to be heard, since there is no valid reason for one. Sorry. But that's the truth.

Re: No Hybrid Tax Credit with AMT
 

I know that in the fine print, Mercury states one should check with their tax advisor about eligibility.

I assume that everyone who wants to sue, did exactly that, before purchasing? What did your tax advisor say exactly?