Your accountant is correct. The Federal amount is a deduction from adjusted gross income. It is NOT a credit, which reduces your tax dollar for dollar. As a result, the $1,500 deduction will reduce your taxes by about $400, depending on your tax bracket. If it goes back up to $2,000, your Federal Income tax will be reduced by about $500, again depending on your tax bracket.
Information on the deduction is available on Toyota's web site and the IRS's web site.
Some states do allow a tax credit, which you claim on your state tax return, but not all states have this. Since I don't know what state you are in, I can't tell you whether your state has a credit or not. I know that Oregon and Conneticut do, but I am not sure which other states also have a tax credit.
Information on the deduction is available on Toyota's web site and the IRS's web site.
Some states do allow a tax credit, which you claim on your state tax return, but not all states have this. Since I don't know what state you are in, I can't tell you whether your state has a credit or not. I know that Oregon and Conneticut do, but I am not sure which other states also have a tax credit.
