Any U.S. Prius drivers here get their refund/tax credit/whatever it is? Hubby and I went to do taxes yesterday and what CPA has told us is that we get a *deduction* of $2K, not a *tax credit* of $3150. How is this possible??? And......how can I access information on this $3150 tax credit that is supposedly for us?

There's a HUGE difference between a deduction of $2K and a credit of $3150.

Thank you,

Bippy

 

2005 Prius owners get a $2k tax deduction. 2006 Prius owners get the $3150 tax credit. Google "Prius tax credit" and you'll get more info.

 

Straight from the horse's...ummm...well

http://www.irs.gov/newsroom/article/...154318,00.html


IR-2006-26, Feb. 8, 2006

Washington — The Internal Revenue Service has certified the model year 2006 Toyota Prius Hybrid for the clean fuel vehicle deduction. This certification means that taxpayers who purchased a 2006 Toyota Prius new during calendar year 2005 may claim a tax deduction of up to $2,000 on line 36 of Form 1040.

The agency stresses that the $2,000 deduction is for tax years 2005 and earlier. Starting in 2006 the deduction is replaced with a credit, which will require a different certification. The tax credit for hybrid vehicles applies to vehicles purchased on or after January 1, 2006 and may be as much as $3,400 for those who purchase the most fuel-efficient vehicles.

For taxpayers filing their 2005 tax returns, however, the deduction must be taken in the year the vehicle was originally used and the taxpayer must be the original owner. Since this benefit can be taken as an adjustment to income on Form 1040, individuals do not have to itemize deductions to claim this deduction.

 

Well, holy tubs full of ****. I purchased my 2005 Prius at the END OF NOVEMBER 2005. Is there no grace anywhere for us? That is a hugemongeous difference--makes me want to go and trade in my 2005 for a 2006, for crying out loud--then I'd get a deduction for 05 and a credit for 06.

Frankly, if they *really* want to encourage buying these types of vehicles, they'd grandfather in all of the hybrids, and allow the state rebate to continue ad infinitum.

a disgusted & disgruntled Bippy

 

Matthew 20:1-16


The Parable of the Workers in the Vineyard

1"For the kingdom of heaven is like a landowner who went out early in the morning to hire men to work in his vineyard. 2He agreed to pay them a denarius for the day and sent them into his vineyard. 3"About the third hour he went out and saw others standing in the marketplace doing nothing. 4He told them, 'You also go and work in my vineyard, and I will pay you whatever is right.' 5So they went.

"He went out again about the sixth hour and the ninth hour and did the same thing. 6About the eleventh hour he went out and found still others standing around. He asked them, 'Why have you been standing here all day long doing nothing?'

7" 'Because no one has hired us,' they answered.
"He said to them, 'You also go and work in my vineyard.'

8"When evening came, the owner of the vineyard said to his foreman, 'Call the workers and pay them their wages, beginning with the last ones hired and going on to the first.'

9"The workers who were hired about the eleventh hour came and each received a denarius. 10So when those came who were hired first, they expected to receive more. But each one of them also received a denarius. 11When they received it, they began to grumble against the landowner. 12'These men who were hired last worked only one hour,' they said, 'and you have made them equal to us who have borne the burden of the work and the heat of the day.' 13"But he answered one of them, 'Friend, I am not being unfair to you. Didn't you agree to work for a denarius? 14Take your pay and go. I want to give the man who was hired last the same as I gave you. 15Don't I have the right to do what I want with my own money? Or are you envious because I am generous?'

16"So the last will be first, and the first will be last."

 

It would be nice if Congress REALLY encouraged the purchase of Hybrids, as well as raise the CAFE standards on other vehicles. But with an oilman as President and the strength of the oil lobby (and resistance from automakers) - don't plan on seeing either any time soon!

 

I feel the November 2005 persons pain. I bought mine on Dec 16, 2005 !! and of course i got that 2k deduction.

 

No Grace. I got my 2006 Prius this March and my $3100.00 TAX CREDIT! I'm glad I waited.

 

OK, blame it on George. Wasn't it George who put in the initial tax deduction which started at 4K afew years back? Wasn't George who signed into law the new tax credits that will net me a nice $3100 tax credit? You must be a democrat! What did Bill do to encourage Hybrid production and sales. I'll tell you what will really spur sales and raise Hybrid resale rates. HOV lanes use. Now, hear again GEORGE has signed a law that saids true Hybrids can use them. But many of the states are lagging in implementing this. I live in AZ and they have not gotten off their butt yet. California and the Gubernator allow HOV lane use. Hmm, sounds to me like George is doing a bit more than a lot of other folks to spur Hybrid sales which will lead to more Hybrid production.

 

Bippy, this info was news and well out there well before you bought your Pri.. The amount of the deduction wasn't guaranteed.. but it was from reliable orgs it would be about that amount.

Were you satisfied with your purchase & price at the time?? Then don't go forward with regrets. You started saving gas well before others.