I bought a 2005 Prius (happy I did) knowing about all the savings I would be having. One of the things I looked forward to is the tax time discount I had heard about but now that it is tax time I am finding according to the IRS form 8834 (Qualified Electric Vehicle Credit) that the Prius is NOT concidered for a savings. Am I mis reading something or has that always been the case? Not really a big deal as I would have bought the car anyway but I want to take advantage of all the savings I can ofcoarse. Any thoughts? Viro
Ok looks like I was looking under the wrong section in Turbo Tax. The Prius would NOT be concidered an Electric Car so it doesn't apply to that section which is what confused me, it actually falls under the Misc. Deductions. My bad! Viro
True, the Prius does not qualify for the Electric Vehicle Credit. It does qualify for the "Clean Fuel Deduction" if bought in 2005. If you bought the car this year, there is a nice new tax credit that applies to the Prius. There is lots of info here. Do a search for tax credit.
We overlapped replies. I was looking it up in TurboTax too! The TurboTax help was actually pretty helpful.
I'm buying in 2006 on faith that NY will redo their $2000 tax credit which expired last year... Otherwise, it's $2k more than I planned/could afford on a new car. http://www.newsday.com/news/local/wire/new...egion-apnewyork
