Hybrid Tax Credit Not Family Friendly
Thread Starter
|
Opec Nightmare
Joined: Nov 2006
Posts: 89
From: Northern Illinois
Re: Hybrid Tax Credit Not Family Friendly
Sorry, I do not have any suggestions.
HELP
I normally just file the 540EZ and get about 1000 back, I have no kids and no other dependents. I am wondering if I even have a chance of getting any of the 2100 or if I should just forget about it and continue to file the 540EZ. Can you guys recomend any programs that can do the calculations for me without charging me or at least not until I file, assuming that I will get a greater return by filling the 540. Thanks for your help in advance.
I normally just file the 540EZ and get about 1000 back, I have no kids and no other dependents. I am wondering if I even have a chance of getting any of the 2100 or if I should just forget about it and continue to file the 540EZ. Can you guys recomend any programs that can do the calculations for me without charging me or at least not until I file, assuming that I will get a greater return by filling the 540. Thanks for your help in advance.
Thread Starter
|
Opec Nightmare
Joined: Nov 2006
Posts: 89
From: Northern Illinois
Re: Hybrid Tax Credit Not Family Friendly
Thanks Rick for sharing this information.
I wish they could provide it in some type of rebate where ALL people are encouraged to buy these great cars-- last tank 90 MPG . I think we would see more hybrids leaving the dealerships.
I hope everyone has a nice Easter weekend.
I wish they could provide it in some type of rebate where ALL people are encouraged to buy these great cars-- last tank 90 MPG . I think we would see more hybrids leaving the dealerships.
I hope everyone has a nice Easter weekend.
Active Enthusiast
Joined: Mar 2006
Posts: 77
From: Los Angeles, CA
Re: Hybrid Tax Credit Not Family Friendly
I'm not sure if this was posted elsewhere, but I found this on HybridCars.com.
Hybrid Tax Credits & Alternative Minimum Tax (AMT)
--------------------------------------------------------------------------------
When considering the economics of buying a hybrid car, a shopper’s first best question has nothing to do with gas consumption, maintenance costs, or resale value. Surprisingly, the most important dollars-and-sense consideration is whether or not you pay the Alternative Minimum Tax (AMT). The answer to that question will determine if you qualify for the federal hybrid tax credit—a few hundred dollars or a couple of thousand dollars, depending on the vehicle purchased and when you buy it.
Unfortunately, many of the consumers most likely to buy a hybrid—prosperous but not ultra-wealthy families with kids and mortgages—are the most likely to pay the AMT. Therefore, a core group of hybrid shoppers will not receive the well-publicized tax credit. This loophole calls into question the federal government’s ability and commitment to encouraging consumers to conserve energy by purchasing a hybrid.
What is the AMT?
The history of the AMT dates back to the Tax Reform Act of 1969. The goal of the legislation was to prevent millionaires from exercising every possible credit and loophole, and thus entirely evading taxes. Sounds like a good idea? However, because the rates were not adjusted for inflation, the AMT now affects more and more of the middle class as well as the rich. According to the New York Times, nearly 30 million tax payers will be affected by 2010.
A few AMT rules-of-thumb:
• If you owed AMT in the past, you are likely to pay it again.
• The larger your family, the harder it is to escape the AMT.
• Homeowners with incomes between $150,000 and $400,000 are very likely to be subject to AMT.
• Residents of California, New York, and any other state that charges state income tax are more likely to fall into the AMT bucket.
The exceptions:
• Single people earning between about $25,000 and $115,000 should escape AMT, and therefore find the hybrid tax credit useful.
• If you earn more than $750,000 per year, then your taxes are likely to exceed the AMT. The hybrid tax credit would be allowable.
These are rough guidelines. See a tax professional for detailed advice.
Hybrids, AMT, and Conservation
As long as the AMT remains in effect, any future legislation that gives tax payer credits for energy conservation will exclude the growing number of Americans who pay AMT. Any serious government proposal about encouraging consumers to buy hybrids, plug-in hybrids, electric cars, or flex-fuel vehicles via tax credits must consider the effects of the AMT.
Hybrid Tax Credits & Alternative Minimum Tax (AMT)
--------------------------------------------------------------------------------
When considering the economics of buying a hybrid car, a shopper’s first best question has nothing to do with gas consumption, maintenance costs, or resale value. Surprisingly, the most important dollars-and-sense consideration is whether or not you pay the Alternative Minimum Tax (AMT). The answer to that question will determine if you qualify for the federal hybrid tax credit—a few hundred dollars or a couple of thousand dollars, depending on the vehicle purchased and when you buy it.
Unfortunately, many of the consumers most likely to buy a hybrid—prosperous but not ultra-wealthy families with kids and mortgages—are the most likely to pay the AMT. Therefore, a core group of hybrid shoppers will not receive the well-publicized tax credit. This loophole calls into question the federal government’s ability and commitment to encouraging consumers to conserve energy by purchasing a hybrid.
What is the AMT?
The history of the AMT dates back to the Tax Reform Act of 1969. The goal of the legislation was to prevent millionaires from exercising every possible credit and loophole, and thus entirely evading taxes. Sounds like a good idea? However, because the rates were not adjusted for inflation, the AMT now affects more and more of the middle class as well as the rich. According to the New York Times, nearly 30 million tax payers will be affected by 2010.
A few AMT rules-of-thumb:
• If you owed AMT in the past, you are likely to pay it again.
• The larger your family, the harder it is to escape the AMT.
• Homeowners with incomes between $150,000 and $400,000 are very likely to be subject to AMT.
• Residents of California, New York, and any other state that charges state income tax are more likely to fall into the AMT bucket.
The exceptions:
• Single people earning between about $25,000 and $115,000 should escape AMT, and therefore find the hybrid tax credit useful.
• If you earn more than $750,000 per year, then your taxes are likely to exceed the AMT. The hybrid tax credit would be allowable.
These are rough guidelines. See a tax professional for detailed advice.
Hybrids, AMT, and Conservation
As long as the AMT remains in effect, any future legislation that gives tax payer credits for energy conservation will exclude the growing number of Americans who pay AMT. Any serious government proposal about encouraging consumers to buy hybrids, plug-in hybrids, electric cars, or flex-fuel vehicles via tax credits must consider the effects of the AMT.
Thread Starter
|
Opec Nightmare
Joined: Nov 2006
Posts: 89
From: Northern Illinois
Re: Hybrid Tax Credit Not Family Friendly
I wish I saw this before. Thanks for sharing it. Now if we can get the dealerships & legislators to understand this as well.
I'm not sure if this was posted elsewhere, but I found this on HybridCars.com.
Hybrid Tax Credits & Alternative Minimum Tax (AMT)
--------------------------------------------------------------------------------
When considering the economics of buying a hybrid car, a shopper’s first best question has nothing to do with gas consumption, maintenance costs, or resale value. Surprisingly, the most important dollars-and-sense consideration is whether or not you pay the Alternative Minimum Tax (AMT). The answer to that question will determine if you qualify for the federal hybrid tax credit—a few hundred dollars or a couple of thousand dollars, depending on the vehicle purchased and when you buy it.
Unfortunately, many of the consumers most likely to buy a hybrid—prosperous but not ultra-wealthy families with kids and mortgages—are the most likely to pay the AMT. Therefore, a core group of hybrid shoppers will not receive the well-publicized tax credit. This loophole calls into question the federal government’s ability and commitment to encouraging consumers to conserve energy by purchasing a hybrid.
What is the AMT?
The history of the AMT dates back to the Tax Reform Act of 1969. The goal of the legislation was to prevent millionaires from exercising every possible credit and loophole, and thus entirely evading taxes. Sounds like a good idea? However, because the rates were not adjusted for inflation, the AMT now affects more and more of the middle class as well as the rich. According to the New York Times, nearly 30 million tax payers will be affected by 2010.
A few AMT rules-of-thumb:
• If you owed AMT in the past, you are likely to pay it again.
• The larger your family, the harder it is to escape the AMT.
• Homeowners with incomes between $150,000 and $400,000 are very likely to be subject to AMT.
• Residents of California, New York, and any other state that charges state income tax are more likely to fall into the AMT bucket.
The exceptions:
• Single people earning between about $25,000 and $115,000 should escape AMT, and therefore find the hybrid tax credit useful.
• If you earn more than $750,000 per year, then your taxes are likely to exceed the AMT. The hybrid tax credit would be allowable.
These are rough guidelines. See a tax professional for detailed advice.
Hybrids, AMT, and Conservation
As long as the AMT remains in effect, any future legislation that gives tax payer credits for energy conservation will exclude the growing number of Americans who pay AMT. Any serious government proposal about encouraging consumers to buy hybrids, plug-in hybrids, electric cars, or flex-fuel vehicles via tax credits must consider the effects of the AMT.
Hybrid Tax Credits & Alternative Minimum Tax (AMT)
--------------------------------------------------------------------------------
When considering the economics of buying a hybrid car, a shopper’s first best question has nothing to do with gas consumption, maintenance costs, or resale value. Surprisingly, the most important dollars-and-sense consideration is whether or not you pay the Alternative Minimum Tax (AMT). The answer to that question will determine if you qualify for the federal hybrid tax credit—a few hundred dollars or a couple of thousand dollars, depending on the vehicle purchased and when you buy it.
Unfortunately, many of the consumers most likely to buy a hybrid—prosperous but not ultra-wealthy families with kids and mortgages—are the most likely to pay the AMT. Therefore, a core group of hybrid shoppers will not receive the well-publicized tax credit. This loophole calls into question the federal government’s ability and commitment to encouraging consumers to conserve energy by purchasing a hybrid.
What is the AMT?
The history of the AMT dates back to the Tax Reform Act of 1969. The goal of the legislation was to prevent millionaires from exercising every possible credit and loophole, and thus entirely evading taxes. Sounds like a good idea? However, because the rates were not adjusted for inflation, the AMT now affects more and more of the middle class as well as the rich. According to the New York Times, nearly 30 million tax payers will be affected by 2010.
A few AMT rules-of-thumb:
• If you owed AMT in the past, you are likely to pay it again.
• The larger your family, the harder it is to escape the AMT.
• Homeowners with incomes between $150,000 and $400,000 are very likely to be subject to AMT.
• Residents of California, New York, and any other state that charges state income tax are more likely to fall into the AMT bucket.
The exceptions:
• Single people earning between about $25,000 and $115,000 should escape AMT, and therefore find the hybrid tax credit useful.
• If you earn more than $750,000 per year, then your taxes are likely to exceed the AMT. The hybrid tax credit would be allowable.
These are rough guidelines. See a tax professional for detailed advice.
Hybrids, AMT, and Conservation
As long as the AMT remains in effect, any future legislation that gives tax payer credits for energy conservation will exclude the growing number of Americans who pay AMT. Any serious government proposal about encouraging consumers to buy hybrids, plug-in hybrids, electric cars, or flex-fuel vehicles via tax credits must consider the effects of the AMT.
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