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Originally Posted by tomdavie
I have never heard that the Gov will shave your tax credit if you make more or less than the next guy. That cant make sense can it?
We bought in april so we should get the full tax credit. We too may have to take the Amt however. We shall see.
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It has nothing with what others make. It is just by law, there is a MINIMUM tax, and you CAN'T pay one penny less than that. With these large Hybrid Tax Credits, a lot of people are finding that the credit will drop them to below the MINIMUM, and that isn't allowed. So, the best they can do, is pay the minimum, and forfeit any additional amounts the credit would have, otherwise, brought them.
Which month you purchased as nothing to due with the MINIMUM tax, but instead, is the tax credit phase out. If one buys a Toyota, it can become a double whammy.