Quote:
Originally Posted by Sledge
Let me put it this way: the feds will not write you a check if you owe them nothing on April 15th before applying the hybrid tax credit.
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If there are any CPA's or IRS employees here that can say I am wrong I'll be the first to admit it, but I'm pretty sure about this....
It depends on your definition of "owe". If your federal tax liability for the year is $0, then there is nothing to credit against...and you won't get a check. But you probably couldn't afford to buy a new hybrid if you are in a tax bracket that results in you not owing any taxes.
On the other hand, the amount of money you "owe" due to underpaying during the year is completely irrelevant. If your tax liability for the year is $25,000 and you've had $25,000 withheld over the course of the year, the federal government WILL indeed write you a check for $2,000 if you have a hybrid tax credit that reduces your liability below the $25,000 that you have already paid.
-Tim
2006 Mercury Mariner Hybrid AWD
Black with Pebble interior
Premium Package with Nav & Moonroof
Current ODO:
26,152
Typical Drive: 20 min crosstown in heavy traffic (3.5mi there and back twice a day)
532 Gallons of gas saved
That's 10,642 lbs less CO2 emitted