Proof of Tax Credit
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In California you will get a letter from the state. I think it did come automatically but it has been a few months and my mind is busy. You may want to check the DMV site and just put Hybrid in the search, it will bring up most of the pertinent info.
Remember, the deadline is the end of the QUARTER, following the quarter that the manufacturer made it's 60Kth sale of a hybrid. It is NOT the DAY of the sale.
Since we all know precisely what day quarters end, we know what day to look out for. I'm sure we'll all hear about it when a manufacturer reaches 60K, and we have at least 90 days from that time before the credit starts diminishing.
Since we all know precisely what day quarters end, we know what day to look out for. I'm sure we'll all hear about it when a manufacturer reaches 60K, and we have at least 90 days from that time before the credit starts diminishing.
kente777 -- Bill of Sale would probably work for early purchasers, I guess. But as the cars approach the 60K mark, how do you know your purchase qualifies?
salsawonder -- The state, huh? Check with the DMV? I thought this was a federal program. I just assumed this would be administered by the manufacturers. I can't imagine the DMV helping out with this... Maybe I'll just keep an eye on the mail and wait.
salsawonder -- The state, huh? Check with the DMV? I thought this was a federal program. I just assumed this would be administered by the manufacturers. I can't imagine the DMV helping out with this... Maybe I'll just keep an eye on the mail and wait.
DanMan32 -- It's on the number manufactured, eh?... That makes sense from an administrative POV. That's more logical than the number of purchases. Thanks for the clarification. You have a big assumption, however, "I'm sure we'll all hear about it when a manufacturer reaches 60K, and we have at least 90 days from that time before the credit starts diminishing." People know very little. There still has to be a way for the manufacturer to notify us that we made it and at what level.
http://www.toyota.com/vehicles/2006/prius/tax.html
specifically, you'll want to read Toyota's current take on the hybrid tax credit (since the IRS hasn't issued anything specific yet on how to take it on the 2006 taxes):
http://www.toyota.com/images/vehicles/2 ... letter.pdf
specifically, you'll want to read Toyota's current take on the hybrid tax credit (since the IRS hasn't issued anything specific yet on how to take it on the 2006 taxes):
http://www.toyota.com/images/vehicles/2 ... letter.pdf
So, keep the bill of sale... someone said that earlier. Hmm.
5. The purchaser must retain appropriate documentation showing the purchase of the vehicle and the date of the delivery of the vehicle.
That AMT issue could be tricky, too.
5. The purchaser must retain appropriate documentation showing the purchase of the vehicle and the date of the delivery of the vehicle.
That AMT issue could be tricky, too.
Of course keep the bill of sale. In Massachusetts I told my "tax preparer," she wrote it in the box provided on the form, I took my deduction and that was the end of it. (On both state and federal forms)
When I bought my car in March of 04 my Toyota dealer did not know anything about the exemption.
When I bought my car in March of 04 my Toyota dealer did not know anything about the exemption.
Hybrid Tax Credit.
To receive the $2000 Tax DEDUCTION (not CREDIT) for a 2005 Hybrid (Prius) purchase you need (of course) your bill of sale showing you were the ORIGINAL buyer. Used Prii don't count.
Then download and print a copy from:
http://www.toyota.com/vehicles/2006/prius/tax.html.
Keep this with your FILE COPY.
The 2005 1040 will (should) ask if you bought a Hybrid vehicle in 2005.?
On Turbo Tax Click on YES and the program subtracts the deduction based on your tax % category. For the average Prius driver the real tax savings will likely be disappointing but... a few hundred off the top beats a "poke in the eye." (I always hated that one)
Other computer tax programs presumably have something similar.
Look at Michelle's reply. She usually has it right.
*Salsawonder (SD neighbor) I got no letter from Calif. This is a Fed program, (except for the HOV stickers.)
My salesman at (Frank Toyota) told me how to do this when I bought my 04 Prius.
I'm guessing that some 2004 Prius buyers didn't file for this deduction. I don't know if you can claim it for 2005 or that boat has sailed. It probably can be used in 2005. Does anyone else know for sure..?
~JD ~ Del Cerro~
To receive the $2000 Tax DEDUCTION (not CREDIT) for a 2005 Hybrid (Prius) purchase you need (of course) your bill of sale showing you were the ORIGINAL buyer. Used Prii don't count.
Then download and print a copy from:
http://www.toyota.com/vehicles/2006/prius/tax.html.
Keep this with your FILE COPY.
The 2005 1040 will (should) ask if you bought a Hybrid vehicle in 2005.?
On Turbo Tax Click on YES and the program subtracts the deduction based on your tax % category. For the average Prius driver the real tax savings will likely be disappointing but... a few hundred off the top beats a "poke in the eye." (I always hated that one)
Other computer tax programs presumably have something similar.
Look at Michelle's reply. She usually has it right.
*Salsawonder (SD neighbor) I got no letter from Calif. This is a Fed program, (except for the HOV stickers.)
My salesman at (Frank Toyota) told me how to do this when I bought my 04 Prius.
I'm guessing that some 2004 Prius buyers didn't file for this deduction. I don't know if you can claim it for 2005 or that boat has sailed. It probably can be used in 2005. Does anyone else know for sure..?
~JD ~ Del Cerro~
Hi JD,
On your boat sailing question: it has for 2004 owners... Here are the rules for the deduction:
The one-time deduction must be taken in the year the vehicle is originally used. The taxpayer must be the original owner. Individuals take this benefit as an adjustment to income on Form 1040. They do not have to itemize deductions on their tax returns to claim it.
On your boat sailing question: it has for 2004 owners... Here are the rules for the deduction:
The one-time deduction must be taken in the year the vehicle is originally used. The taxpayer must be the original owner. Individuals take this benefit as an adjustment to income on Form 1040. They do not have to itemize deductions on their tax returns to claim it.
Re: Hybrid Tax Credit.
You file for the tax deduction in the year that you purchase your hybrid. If you didn't file that year, you can always file an amended US federal tax return for that year, but I don't know about the fees involved with an amended return.JDavies said:
try this:
http://www.toyota.com/vehicles/2006/prius/tax.html
it's just the peeriod that got in the way....
http://www.toyota.com/vehicles/2006/prius/tax.html
it's just the peeriod that got in the way....
Just read this online:
Car manufacturers will let you know upfront what the maximum dollar value of your tax credit will be. Your hybrid tax credit may be reduced by various limitations.
Under guidance released by the IRS, car manufacturers can issue you a written certification specifying the dollar amount of your hybrid tax credit. The IRS mandates that the manufacturer's certification must have the following sixteen elements:
Name, address, and tax identification number of the manufacturer,
Make, model, model year, and other vehicle identification information,
A statement that the vehicle was made by the manufacturer,
The type of credit for which the vehicle qualifies,
The dollar amount of the tax credit (showing all computations),
The gross vehicle weight rating of the vehicle,
The vehicle inertia weight class of the vehicle,
The city fuel economy of the vehicle,
Statement that the vehicle complies with the provisions of the Clean Air Act,
Copy of the certificate that the vehicle meets emission standards under the Clean Air Act,
Statement that the vehicle complies with state air quality control laws.
Statement that the vehicle complies with certain motor vehicle safety provisions,
Statement that the vehicle uses hybrid technology (both internal combustion and a rechargeable energy storage system),
Statement that the vehicle meets or exceeds California low emissions vehicle standards,
Evidence that the vehicle does not exceed maximum power standards.
Perjury statement as follows: "Under penalties of perjury, I declare that I have examined this certification, including accompanying documents, and to the best of my knowledge and belief, the facts presented in support of this certification are true, correct, and complete."
I suspect this will be one long tax document. You should keep this tax certification for at least four years.
Car manufacturers will let you know upfront what the maximum dollar value of your tax credit will be. Your hybrid tax credit may be reduced by various limitations.
Under guidance released by the IRS, car manufacturers can issue you a written certification specifying the dollar amount of your hybrid tax credit. The IRS mandates that the manufacturer's certification must have the following sixteen elements:
Name, address, and tax identification number of the manufacturer,
Make, model, model year, and other vehicle identification information,
A statement that the vehicle was made by the manufacturer,
The type of credit for which the vehicle qualifies,
The dollar amount of the tax credit (showing all computations),
The gross vehicle weight rating of the vehicle,
The vehicle inertia weight class of the vehicle,
The city fuel economy of the vehicle,
Statement that the vehicle complies with the provisions of the Clean Air Act,
Copy of the certificate that the vehicle meets emission standards under the Clean Air Act,
Statement that the vehicle complies with state air quality control laws.
Statement that the vehicle complies with certain motor vehicle safety provisions,
Statement that the vehicle uses hybrid technology (both internal combustion and a rechargeable energy storage system),
Statement that the vehicle meets or exceeds California low emissions vehicle standards,
Evidence that the vehicle does not exceed maximum power standards.
Perjury statement as follows: "Under penalties of perjury, I declare that I have examined this certification, including accompanying documents, and to the best of my knowledge and belief, the facts presented in support of this certification are true, correct, and complete."
I suspect this will be one long tax document. You should keep this tax certification for at least four years.
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I do my own taxes, and last year when I claimed my Prius deduction it was a moderate headache. Taking the deduction on the federal form was easy, but since Minnesota did not recognize the same deduction, I essentially had to go back, recalculate the federal without the deduction and plug those numbers back in to my state form. The tax credit should be much easier.
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