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Old 08-22-2006, 08:54 PM
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highroute highroute is offline
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Location: Oakland CA USA
Hybrids: 2006 Toyota Prius
Posts: 22
Default Re: tax credit question...

Quote:
Originally Posted by Tim K
Line 57 was thousands of dollars last year. I guess the confusion is taxes OWED vs taxes DUE.
As nomorebenz wrote, changing your tax withholding on a W-4 form with your employer will not affect your ability to use the hybrid credit. The key is comparing Form 1040 line 46 with line 56, after adding your hybrid credit to line 56. Line 46 needs to be bigger than line 56 in order for you to take full advantage of the hybrid credit and your other credits if any. If you merely change your withholding, that change shows up way down on line 64, too low to affect your usage of the credit.

If you decide you want to increase line 46 because it will be smaller than line 56, consider these ideas: Talk to your tax adviser. Work some overtime. Postpone your contributions to charity until January. Sell some stocks on which you have a long-term capital gain. Convert part of your conventional IRA to a Roth IRA. But before you do any of that, talk to your tax adviser!

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highroute -
2006 Barcelona Red Metallic

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