Okay, this is a REALLY stupid question.

According to

http://www.irs.gov/newsroom/article/...175828,00.html

Until June 30 of 2008, a $1,050 tax credit will be availalbe for the purchase of a HCH.

So, do you automatically qualify for the entire tax credit or does the IRS modify the amount based on your circumstances? For example, would a millionare only get partial credit while the average joe may recieve the full credit?

 

If you earn more than $80,000 in 2008, the alternative minimum tax will preclude your hybrid tax credit.

If you earn less, you'll get the credit.

 

Be very careful -- even if the AMT does not apply to you, this credit is non-refundable, meaning you only get the amount of the credit up to your net tax liability.

For example, if after taking all your other credits, you end up owing only $700, you will miss out on that $350.

 

That's true. And the IRS form for the hybrid credit contained some odd calculation table for a reduced percentage of the credit based on ..... hell, I couldn't figure it out!

I just wrote down $2,100, and the IRS sent me $2,100, plus whatever else I over-paid last year.

That money will make a brief stop at my bank before being sent to Honda Finance Corp. to pay off the car.
.

 

Form 8910 is basically seeing how much of the full credit was for your personal use, and thus eligible for credit. For most of us, that form should spit out the 2100/1050 full amount.

 

I don't think that is the case. We got almost a $2,000 refund the year we bought the HCH. Are you sure you weren't bumping up against the AMT or something?

Also, the $80k is for a single filer. If you make more than $80k but your spouse does not, you might not hit the AMT (unless you have other deductions like kids).

Regardless, jat1793, you should probably consult a tax professional rather than relying on an internet forum for tax information

 

Are you sure that you got the $2000 refund for the hybrid purchase, and not from other credits like child, mortgage, education, etc? I'm pretty sure I'm not bumping against the AMT, so if you were somehow able to get an actual refund for the $2100, I would like to know

http://taxes.about.com/od/deductions...axcredit_2.htm

 

We don't have kids, the college loans are long gone. The hybrids and our mortgage are our only deductions. This year ('07 taxes) we had to pay ~$1,000 federal on top of the MMH deduction, but last year ('06 taxes) I am positive we got a ~$2,000 federal refund instead of owing a small amount.

My wife does our taxes using TurboTax for what its worth.

 

I can't wait until the tax credit runs out so we can stop beating this horse to death.

Please search the site for "Tax Credit". This has been discussed ad nauseam.

 

I agree. It is way to confusing for humans to understand. It will all be over soon though...