Hello all. I am sure this is premature, but is there anything that we need to be doing now to be sure to get our tax credit for 2006? Does anyone know what the procedure to claim it will be? Do we know how much the credit is yet? Thanks in advance for your input.

 

To the best of my knowledge, the final values have not yet been set by the IRS for the tax credit. There is a group that has done estimates and the 2006 Civic Hybrid is estimated at $2100. The procedure is that when you do your 2006 taxes (in early 2007) you will claim the hybrid tax credit and your overall 2006 tax liability will be reduced by whatever the IRS decides the tax credit is going to be. I guess the short answer is.... we'll see next year!

Eric

 

If you don't wanto to wait a year. You can will out another W-4 with your employer and include the $2,100 tax credit when computing your withholdings.

This website makes it easy. There's a spot for misc. credits.

http://paycheckcity.com/w4/w4instruction.asp

 

Just wondering if anyone has an answer to prajlh's question. I want to make sure that I do everything right so I get my credit.

BP

 

well, when I was using the Turbo Tax Deluxe software, I noticied it had a special section in deductions for hybrid cars ( no lie). Since mine was purchased in 2006 I blew by the section but it is reprotable in the tax software and will likely be placed correctly for the 2006 tax credit area similar to other true tax credit reporting.

 

According to Fueleconomy.gov (run by the DOE):


"IRS will be developing a special form taxpayers will have to use to claim the credit. The form will be released at a later date."




IRS has yet to provide guidance on several rules

• Rules under which lessors may claim credits
  
• The rule preventing the credits from being used to reduce alternative minimum tax liability (chances are you won't be able to use the credit to offset AMT)
  
  
• Rules relating to recapture of credit (e.g., if the vehicle is re-sold)
  

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

 

Keep the sales receipt handy. I suspect you will need to send a copy.

 

Also, make sure you don't make too much money, or the Alternative Minimum Tax will negate your tax credit!

Aneil