Hey guy I purchased a new '13 plugin couple weeks ago the dealer is completely helpless I'm in California I already got the cvrp rebate but I have the form 8936 IRS and need help when and how do I file this ? Do I file it with my income taxes, is this real money or a tax deduction, do I get a check ? Thanks in advance
You file it with your income taxes and it's a credit that gets lumped in with everything else, if you owe any it'll go towards that.
It is a credit against taxes owed for the year, but cannot exceed the taxes owed. Note that we are talking about your total tax bill, not what you may owe or get back when filing due to contributions toward your tax bill from, for example, payroll withholding or estimated tax payments.
It you have any Federal taxes, it is not worthless. if you do not have to file taxes, yes it is worthless.
Is your tax bill for the year $0? If so, then this credit won't help you. It doesn't matter if you have paid everything you owe by the end of the year and owe nothing additional when filing; what counts is how much tax you had to pay, regardless of when you pay it.
If you file your own tax returns, do you use the short form or the long form. In other words, do you itemize and claim deductions for things like health costs, mortgage interest, etc? If so, then when you file for 2013, you will fill out the form with the purchase info and claim the credit against your total tax liability. Disclaimer: I am not a tax expert, CPA or actor playing one of them on television. Consult your tax professional.
If you pay your federal income taxes through payroll withholding, or through quarterly payments directly to the IRS, this credit will increase your refund from the IRS. But if your total tax is low, this credit cannot make that refund larger than those total payments.
Note we also have a sticky thread on PiP tax incentives: Federal and State Incentives for Plug-Ins, EV's | PriusChat Let me know if that could be clearer.
