Hi -- is there a tax credit for the TCH, and if so how does one file it?

Thanks

 

Include form 8910 to claim the tax credit when filing your taxes. This article lists the dollar amounts, and what to do.

 

Thanks very much!

 

If you purchased before Oct. 1 you get a $2600 credit. People who purchase between Oct. 1 and March 31 get a $1300 credit. The credit is reduced to $650 for the next six month period and then goes away.

 

TurboTax is telling me that form 8910 to claim the hybrid tax credit is not going to be available until Feb 16. I have no idea if this is an IRS delay or a TurboTax delay, but I can't believe that this form won't be ready until then. I'm getting a huge refund and want it as soon as possible, and usually my taxes are done by the end of January. It's not like this was a last-second tax credit that got put into place, so why wasn't this form ready a long time ago?

Thanks for letting me vent...

 

Then don't use turbo tax. i usually do mine manually, and then electronically file it through one of the peolpe the IRS recomends. Only costs a few dollars.

I think I will owe some money this year (even with my Camry credit) so I will probably send mine snail mail in April.

 

I am using Turbo Tax, too. I got the same information about the form not being ready yet. Did you get the idea that the tax credit will reduce your tax liability, but won't increase your refund?

Overeager in MD,

JoAnn

 

Yeah, I use Turbo Tax every year as well. It always seems there's a form not ready or even my state program has not been finalized. I still love it, and usually by middle of February everthing is said and done. As far as the credit, Turbo Tax wording makes it look at first glance that it won't increase your refund, but if you look at it a little closer its based on the total tax you owe. It should decrease your tax liability by $xxxx.00 thus increasing your refund by the same amount. Except if you are in the wonderful position of not owing any taxes at all. Then you would lose it.

But of course I am not a tax professional, and I could be completely wrong!
Mark

 

Just watch out if you owe the Alternative Minimum Tax

Here's the quote from the IRS:

Also the Alternative Motor Vehicle Credit cannot be used to offset the Alternative Minimum Tax (AMT). A taxpayer cannot claim the credit unless the taxpayer's regular tax liability exceeds the taxpayer’s AMT liability.
Even if a person is not subject to the AMT, he may not be able to claim the maximum allowable credit, or any credit, for the qualified vehicle that is purchased. The amount of the credit that one can claim depends on the particular facts and circumstances.

 

Actually, you would be in the same boat as everyone else, according to the wording on the TurboTax support website. From the attached statement, this does not appear to be a TurboTax specific issue:

"When you click Yes on the Buy a Hybrid or Alternative Motor Vehicle screen, TurboTax fails to calculate the hybrid or alternative motor vehicle credit and repeats the topic.
This issue is occurring because the IRS has not yet finalized Form 8910 (Alternative Motor Vehicle Credit). We expect that the final version of this form will be available by early February, 2007."

I just checked the www.irs.gov website, and sure enough the 2006 version of form 8910 is not yet available for download.