2006 Tax credit

jburns,

If the 2006 8910 is not available before Feb. 15 will you be filing with the 2005 form, filing a 1040X to claim the credit later, or just sending them a copy and file later?

 

<div class='quotetop'>QUOTE(JimN @ Jan 21 2007, 08:13 PM) [snapback]378817[/snapback]</div>

Not sure yet. I'll probably go through several moods as the date approaches.

 

I found this link: Tax Credit Info helpful.

 

considering that in 05 the deduction was subject to a 3 year recapture, and the benefit wasn't NEARLY as good as you folks who bought in 06 are getting, i'd imagine they'd have a similar recapture rule in mind.

 

<div class='quotetop'>QUOTE(priusFTW @ Jan 22 2007, 02:43 PM) [snapback]379089[/snapback]</div>

priusFTW, thank you for the link, but all that is already known and has been discussed thoroughly in the past.

The two on-going debates within THIS specific thread are:

1) The current 8910 form says "2005" on top, even though it is for "Tax Credits" which we all know were introduced for Hybrids in 2006 (before 2006 there were Tax Deductions, NOT Tax Credits)

2) How long would a person have to own a Prius in order for him/her to keep the credit? In other words, you bought your Prius in 2006, you got the $3150 credit (if you bought it in time), but now you want to trade your Prius in...would the IRS expect the credit to be recaptured? Or is it yours to keep since you owned the vehicle throughout 2006?


<div class='quotetop'>QUOTE(galaxee @ Jan 22 2007, 03:02 PM) [snapback]379102[/snapback]</div>

On the contrary, the gentleman who called me back from the IRS stated that there is currently no rule in place for any recapture of the tax credits allowed for the 2006 hybrid vehicles.

He mentioned that even though no one can officially state whether there will be a time span specified or not for the recapture, he would probably say there won't be one; if you bought your 2006 Hybrid vehicle and had it until you filed your taxes in 2007 (and fell under the basic requirements to receive the appropriate credit), you should be good to go for the appropriate Tax Credits.

His answer was obviously pretty ambiguous, but with the Credits being phased out anyway, and the new Congress having a lot on their hands, I wouldn't be surprised if the issue of recapture was never re-visited.

 

jburns et all,

I understand the advantages of filing earlier rather than later for those receiving a refund. I do not see the advantage of filing before receiving all of the necessary documents as this will just about guarantee a dialogue with the IRS later in the year.

I am not familiar with the details of the student aid request. Isn't a copy of the return just to verify income? If so, the tax credit should be a nonissue. If this is indeed the case why not just omit the credit on the financial aid copy then file the 1040 with the correct form whenever it is available?

From what I read, the recapture of the credit is not part of the law. The IRS writes its own rules and regulations to interpret the law. Since the vehicle in question is not specifically identified on form 8910 how would the IRS determine if the credit should have been refunded in the future? I suspect that claiming "too many" credits would be the only way an investigation would be triggered.

Could the IRS have made the taking of the credit simpler? Yes. Is it inconvenient and unfair that all of the 2006 forms the IRS deems necessary are not available by January 31? Yes. Can you make a Federal case out of it? No.

I look every business day to see if the form is available. If I'm the first to see it I'll post a link.

 

I use TaxACT software, not TurboTax or others. I have used it for five years without problem. Our current and joint dilemma is that the IRS has not yet authorized tax software companies to eFile using the new Form 8910. My software provider even allowed me to input the data and then it computed the correct tax credit. It just didn't print the darn Form 8910. Even though the form is clearly ready and available for download from the IRS web site, save for the old 2005 label in the upper right corner.

We have two choices, wait until these companies are authorized to submit form 8910 "electronically", or submit paper returns manually. Having professionally prepared tax returns for over ten years, I'm confident that a manually printed and mailed return (even with Form 8910 dated 2005) will suffice. Typically, an electronically deposited refund from a manually mailed return will take about a week longer than if the return was originally filed electronically.

Tomorrow, I will take my manually printed Form 1040, with backup, and attach a manually typed Form 8910. I bet I get my refund deposited before the IRS clears the form. I'll let TaxACT file my state return electronically since that return is not impacted.

The IRS may be counting on the majority of us folks to simply give up and waive interest while waiting. Not me. I want my $6,000 refund ASAP. I'll post back when my refund is deposited. If I knew how, I'd post a copy of my filled in Form 8910.

In the mean time, don't miss the available "telephone excise tax" tax credit (much more valuable than a deduction) clearly delineated on page 11 of the Form 1040 instruction booklet. You did faithfully read that "booklet" straight through, didn't you? I knew you did.

You can claim a "standard" credit ranging from a minimum of $30, to a maximum of $60, on line 71 of the 2006 Form 1040, depending on the number of exemptions (typically dependents) claimed on line 6D of the
2006 Form 1040. For verification, see page 60 of the Form 1040 instruction booklet. Or, you can claim the actual excise tax paid if it was greater. If you prefer to claim the actual amount paid, you will need to file Form 8913 with your return.

I'm fairly anal about keeping my past financial records. Unfortunately, I cleaned up my filing cabinet last spring and tossed all the phone bills before 2006. A review of the past year's phone bills indicated I
paid on average $0.75 per month in excise taxes. Clearly the "standard" credit is a no-brainer.

 

<div class='quotetop'>QUOTE(driverlee @ Jan 30 2007, 12:37 AM) [snapback]382672[/snapback]</div>

The 2006 version of form 8910 is now available from the IRS and another thread here.

 

Sorry guys, but I'm desparate for advice. I'm a tax-aphobe and have filed online not using any Prius credits and am now regretting it. This was my situation after using CitizenTax.com

1040 Taxable Income and Tax Section
Line # Description Line Total

38 Amount from line 37 (adjusted gross income) $13308.00
40 Itemized deductions (Add/Edit Sched. A) or your standard deduction (see left margin) $5150
41 Subtract line 40 from line 38 $8158
42 Exemption Amount $3300
43 Taxable Income $4858
44 Tax $488
45 Alternative Minimum Tax n/s
46 Total Tax $488

Can anyone tell me if I should/could have gotten all or some of the $3150?? Thank you so much, I am literally going crazy here!!!!!!

 

<div class='quotetop'>QUOTE(Jonathan @ Feb 12 2007, 06:09 PM) [snapback]389166[/snapback]</div>

Presuming your AGI is composed of wages and interest a quick look indicates you qualify for the credit.

You will need your W-2 and 1099 forms and the date you bought the car.

Go to www.taxact.com and download the free tax program. It has lots of ads which just have to be closed. Key in all your information and print the return. The program will create a 1040, 6251, and 8910. You will need the 6251 and 8910 to complete the 1040X you are going to download from www.irs.gov.

 

<div class='quotetop'>QUOTE(JimN @ Feb 12 2007, 09:20 PM) [snapback]389270[/snapback]</div>

Thank you for a quick response, I will do as you reccomend.

Is there enough information to know if my $488 is the max allowable? (Most I'll get 'back')

Thanks again, Jon

 

<div class='quotetop'>QUOTE(Jonathan @ Feb 13 2007, 12:48 AM) [snapback]389359[/snapback]</div>

You cannot get back more than your total tax--whether you've already paid all of that tax or still owe some of it. So it looks like $488 is your max.

 

<div class='quotetop'>QUOTE(jesart @ Jan 15 2007, 08:25 PM) [snapback]376118[/snapback]</div>

I did my taxes using Quicken 2006 Home and Business (CD) edition a few days ago. They warn you right on the form that it is NOT final. When I first started doing the input, I was getting near the full $3150 deduction....but when I really started to add in all my Form A deductions, my 8910 deduction started to decrease. I think I am pretty much done and my final 8910 deduction amount came down to just over $2,600.

I will have to see if the final form download changes it much. I doubt it will.