FL 22 year old, bought 6/23/07, confused on taxes

You don't need to (and can't) do anything now. You get to claim it on your tax forms when you file for the 2007 Tax Year (which you need to do by April 15, 2008). AFAIK, the tax forms for the 2007 Tax Year haven't even been published yet. However, I imagine you'll need to fill out the Tax Year 2007 version of Form 8910 that Jim posted in the sticky. Of course, you need to also consider the other forms to make sure that the tax credit doesn't reduce your tax liability below the AMT threshold.

 

Did you plan on using H&R Block again next tax season? If so, they should be able to handle this one for you.

You might also consider a DIY tax software package. I've used Turbotax for years. I bought my Prius in 2005 when it qualified for a deduction rather than a credit. TTax handled it with ease. It almost makes completing tax returns enjoyable. Almost.

 

Hi there,

My husband just got himeself an accountant (i.e. a professional tax accountant, not H & R Block) who did his taxes, and he got a whopping return. I wish someone early in life had recmmended to me to go see an accountant instead of doing them myself, or going to the chain tax places. While a solid accountant can never guarantee you a return, I think it is worth the 300 dollars, and would advise anyone to spend that to get much more in return. And if you will be using your vehicle for work, I would even more seriously think about it. I recommend asking around where you live and finding someone good - not always tohe guy who will get you the most money.

Good luck.

Megs

<div class='quotetop'>QUOTE(whitespider @ Jul 7 2007, 03:34 PM) [snapback]474732[/snapback]</div>

 

>I did temp non-taxed jobs till now

whats a 'non taxed' job ?

if pays money, (or goods and services in certain situations) and you're over the minimum income level, you need to file, regardless of what type of work you do.

consulting a tax accountant would be your best bet.

 

<div class='quotetop'>QUOTE(JimboK @ Jul 7 2007, 08:15 AM) [snapback]474625[/snapback]</div>

Get TurboTax...it will do all the entries...is user friendly ....and process the return.....it is greast used it since inception

 

The last time I used TurboTax, there was a bug in the NY state edition that I had to use which told me I owed a whopping big amount of taxes plus a huge penalty for underwithholding. So I re-did the 1040 by hand and found I actually was getting a small refund. No more TurboTax for me.

My accountant is someone I knew in college. Even though she lives in the Philadelphia suburbs, she has done my taxes while I've lived in NYC, DC and now Virginia. She's great and it is extremely helpful to have someone who is an expert on all the ins and outs so I don't have to worry about it.

As for the hybrid tax credit, I printed out the 2006 version of the form 8910 and filled out the first few lines (make, model, purchase date) and filed it along with my other tax docs for this year. I figured I would include it in the paperwork that I send to my accountant so she will have the information she needs to fill out the 2007 version.

 

<div class='quotetop'>QUOTE(whitespider @ Jul 7 2007, 09:31 AM) [snapback]474586[/snapback]</div>

Whitespider, welcome to the Magnetic Grey Club. Check out the free software at www.taxact.com. You will file a 2007 form 1040 and a handful of supporting forms and schedules.

I am presuming that you worked as an independant contractor previously. If so, you will receive forms 1099MISC from anyone who paid you at least $600 in the year. (One is not obligated to issue a 1099 if the amount in box 7 is under $600.) You will have to pay Social Security and other employment taxes. If income taxes have not been deducted from your checks and you have not made quarterly estimated payments have your employer withhold extra from your paychecks for the rest of the year to avoid any penalties.

To answer your original question, you will need to file forms 6251 & 8910 to claim the hybrid credit. All the forms and instructions will be posted at www.irs.gov by some day in February. The IRS should send a tax package to you either the end of December or early January.

Can't help with the Florida return but you can always send a PM if you are stuck.

 

...Another fan of TurboTax here... I've used the Online version for 3 or 4 years now (vs. buy-and-install version) including a year with an unusual bit of stock-option transacting. My credit union, as well as my 401k provider, both offer a discounted rate for it each year.
Also check with your state---while TurboTax online always graciously offers to electronically file my VA return for something like $29, VA's own governmental website offers FREE state returns (completed and filed online) to all residents. And as mentioned above, depending on your income, you may qualify for any number of the free, online Federal return packages, vs. paying the e-filing fee in TurboTax.

 

<div class='quotetop'>QUOTE(JimN @ Jul 7 2007, 10:01 PM) [snapback]474870[/snapback]</div>

As an added note, partially based on whitespider's age of 22, it may be possible that there wouldn't be any penalty even if no extra income is withheld from the paychecks.

Also, as another note, I believe money withheld is considered withheld in equal amounts throughout the year, no matter when the money was actually withheld. So if it is withheld in December that would still help you if you make estimated tax payments throughout the year. It is possible that somebody could avoid the estimated tax penalty this way if they were able to withhold enough later in the year if they had a shortfall on an estimated tax payment.

There is no tax penalty if you have paid at least 90% (I believe) of your previous year's tax liability. I always try to pay at least 100% of the previous year's amount. Wihitespider may even have had no liability as a 21-year-old. Also, I believe there is no tax penalty if you don't owe more than $500 when the taxes are due. Although you would still need to have made the timely estimated tax payments, if you need to make estimated tax payments.

 

Not a fan of turbo tax. If you have anything remotely funky going on, it takes you through all that data entry and then tells you to take it to H&R block because it can't do your taxes. It will also let you do things that you shouldn't be able to do such as claim more mortgage interest than is allowed making you think you are getting a return when in realty you owe uncle sam a HUGE amount of money.

If you are not cookie cutter (i.e., have big mortgages, rentals props, sell/buy stocks, unreimbursed business expenses) then don't use turbo tax. Use a tax professional.

 

I have two brothers who are CPA's and they (both my brothers and CPA's in general) are definately worth the investment. UNless of course your income tends to be on the marginal level and then it's just as well to do the short forms of the 1040's.
Having said that Has anyone watched the Aaron Russo film "From Freedom to Fascism" ? The film, I believe, is still up on youtube and/or google video. Mr. Russo directed several hit movies, including "Trading Spaces" but what he shows in this film is really no laughing matter. It points out that the Fedreal Reserve Bank is a private institution and that the vast majority of income taxes goes to paying off the interest the Fed charges the government for loans. Another intersting point he brings out is that there is no place in Federal code which states that the federal income tax is compulsory. It's a very disturbing piece of work for all of us who were raised in the knowledge that the government exitst to help not exploit it's citizenry.




<div class='quotetop'>QUOTE(ChristoB @ Jul 7 2007, 07:15 PM) [snapback]474877[/snapback]</div>