Hybrid tax credit bait and switch
#41
Re: Hybrid tax credit bait and switch
I just re-read your comments to make sure I wasn't being completely stupid, and I still think I am correct. I think the two of you are making a big assumption about my tax return, which is that I have zero tax liability. I never said this was my situation, although I never made that crystal clear (maybe I should write tax laws! ) All I said was that I was getting a huge refund, and I quoted the fine print of the tax credit which says your liability cannot be reduced below zero.
I apologize if my assumption was incorrect.
I went back and reread your original post
I am seriously p.o.'d right now. Looks like I am NOT paying the AMT, yet I am still only getting a $650 deduction. That's because I bought a house in early-2006, so my 2006 mortgage interest created a huge deduction, which resulted in a large refund. The fine print of the alternate vehicle tax credit says that it only applies against taxes you owe and reduces your liability to zero, and then you lose any remaining credit once your liability is zero. Not a single Toyota salesperson mentioned this fine print, which is also rubbing me the wrong way.
Reading your other follow-up post it looks like the issue ended up being with the date you used for the purchase of this vehicle, and not related to either the AMT or overall tax liability. I am glad it worked out for you.
#42
Re: Hybrid tax credit bait and switch
It seems as if I was getting "piled on" for no reason fellas. I was just trying to not get everyone's false hopes up, and I think I succeeded, since there are several people who have reported that they did not qualify for the credit or the full credit.
If this doesn't mean what it says, then mea culpa:
"The new tax break is a nonrefundable credit. This means the credit can reduce your regular income tax liability to zero, but it won’t produce a tax refund."
Seems pretty clear to me. That's all I was saying.
Where I was incorrect was translating "won't produce a tax refund" to mean "cannot increase your tax refund" because it apparently can do just that for SOME people in certain tax brackets.
It just doesn't increase your refund by adding it to the end result, because it instead reduces you liability, meaning you don't OWE as much. It's not a "hey, pop $2600 on the end of of your refund NO MATTER WHAT" which is kind of what I was saying also.
If this doesn't mean what it says, then mea culpa:
"The new tax break is a nonrefundable credit. This means the credit can reduce your regular income tax liability to zero, but it won’t produce a tax refund."
Seems pretty clear to me. That's all I was saying.
Where I was incorrect was translating "won't produce a tax refund" to mean "cannot increase your tax refund" because it apparently can do just that for SOME people in certain tax brackets.
It just doesn't increase your refund by adding it to the end result, because it instead reduces you liability, meaning you don't OWE as much. It's not a "hey, pop $2600 on the end of of your refund NO MATTER WHAT" which is kind of what I was saying also.
#43
Re: Hybrid tax credit bait and switch
There was very good reason for piling on you! You kept insisting on disseminating bad information, in spite of the repeated attempts to set you straight by numerous different posters, with numerous different approaches to explaining this to you. You refused, until now, to understand what was what.
It is correct, but not particularly clear. You were confusing issues of tax liability with issues of tax withholding and resultant refunds, assuming there was a connection between tax refunds and the word "nonrefundable", which there is not.
Now that you seem to get it...thank you for your very good intentions!
-- Alan
If this doesn't mean what it says, then mea culpa:
"The new tax break is a nonrefundable credit. This means the credit can reduce your regular income tax liability to zero, but it won’t produce a tax refund."
Seems pretty clear to me...
"The new tax break is a nonrefundable credit. This means the credit can reduce your regular income tax liability to zero, but it won’t produce a tax refund."
Seems pretty clear to me...
Now that you seem to get it...thank you for your very good intentions!
-- Alan
#45
Re: Hybrid tax credit bait and switch
I just spent some time eailing all of my congress people as well as the president about the so called hybrid tax credit. What a joke! I believe we were all duped into thinking we would get this credit. I have submitted some URL's that clearly state nothing about AMT and the possible reduction of the credit. I have no idea if my efforts are in vein, however I feel our wisely elected need to know of this injustice. The first URL will help you find your congressmen email if you care to voice your concerns.
http://www.congress.org/congressorg/home/
http://www.irs.gov/newsroom/article/...160325,00.html
http://www.irs.gov/newsroom/article/...153172,00.html
http://www.irs.gov/newsroom/article/...164300,00.html
http://www.energy.gov/taxbreaks.htm
http://www.eere.energy.gov/news/pdfs/tax_credits.pdf
http://money.cnn.com/2005/12/21/Auto...ion=2006010310
http://www.congress.org/congressorg/home/
http://www.irs.gov/newsroom/article/...160325,00.html
http://www.irs.gov/newsroom/article/...153172,00.html
http://www.irs.gov/newsroom/article/...164300,00.html
http://www.energy.gov/taxbreaks.htm
http://www.eere.energy.gov/news/pdfs/tax_credits.pdf
http://money.cnn.com/2005/12/21/Auto...ion=2006010310
#46
Re: Hybrid tax credit bait and switch
Woohoo I guess we are poor enough to get the full credit...I have another $1000 of room until we hit the limit. I guess I am glad my wife got her job when she did...she made 2x in the 2nd half of the year and if she had this job the whole year we wouldn't have gotten the full credit.
#47
Re: Hybrid tax credit bait and switch
The real joke is our stupid tax system. I say scrap it all, and we ALL pay 10% tax after the first $X of income (and maybe a few bucks less per kid). No exceptions.
You make a ton of money and have to pay a lot of tax, too bad. You have a lower income, you pay a little. It is all fair, and predictable.
We could eliminate most of the IRS, and all file by filling out the back of a post card.
Having said all that, I am looking forward to my $1300 credit. :-)
You make a ton of money and have to pay a lot of tax, too bad. You have a lower income, you pay a little. It is all fair, and predictable.
We could eliminate most of the IRS, and all file by filling out the back of a post card.
Having said all that, I am looking forward to my $1300 credit. :-)
#48
Re: Hybrid tax credit bait and switch
ie) The drug dealer pays federal tax every time he buys a new shirt.
PS. Check my posts for the bill that abolishes the IRS
#50
Re: Hybrid tax credit bait and switch
Does anyone believe otherwise?
BTW, like many of you out there on this thread, I 'lost' ~$1.4K of the $2.6K I was hoping for back in mid-'06 (by not having paid attention to the AMT/TMT potentials back then). Ouch. Live & learn, but we move on...