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Old 04-02-2007, 05:22 PM
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SoopahMan SoopahMan is offline
Pretty Darn Active Enthusiast
 
Location: Sunnyvale, CA
Hybrids: Prius 2006
Posts: 361
Default Re: Tax Credit Confusion

Quote:
Originally Posted by centrider View Post
I guess, in checking the relevant form, my AMT zeroed out.
Just to be clear, the AMT should be either 0, or all the tax you're paying; it's an alternative tax model, so either you pay taxes under the regular model or, if the AMT model would charge you more, you pay the AMT instead. If the AMT came up as 0 that means you paid more under the normal model than you would have under the AMT model, not that you had no taxable income under the AMT model.

I'm not an accountant, but I keep track of tax laws so I can put my money where it belongs.

Also, you can make a lot less than $75000 and get hit by the AMT if you have a tax credit coming your way that's over $3000. Hybrid buyers getting such a large credit are in a unique category; before entering my investments but after entering $55k of my income, the AMT kicked in for me. After entering my investments, the AMT was below my normal tax.

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Prius 2006, bought September 14:
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