You are referring to this link. Please pardon me for being tactless, but you are, plain and simply, WRONG. You do not understand the terms liability, withholding, credit, etc. and how they apply to federal taxes. You misunderstood what you read, and ignored the many clear attempts to correct your misunderstanding. Please stop misleading people on this.

If you still disagree with me, as well as disagree with gumby and TeeSter and ck90211 and chilly and DebbieKatz and leahbeatle and occ, in other words EVERY OTHER POSTER IN YOUR CITED THREAD, then I am afraid this will have to wait until actual refund checks are received and reported by forum members, although at this point I am not confident even that would convince you.

Yes, your obstinacy on this point has frustrated me!

-- Alan

I may have to disagree. Let me tell you why. We currently do not own the TCH but will hopefully own one by 3/31 of this year. Anyway, I did our taxes last night using Turbo Tax. This year we are getting a refund. I decided to go back into turbo tax and input all my same information AND included information showing I bought a TCH last year in December (for hypothetical purposes). This means my hybrid credit would be $1300 according to the IRS. Well after finishing my return WITH the hybrid purchase information my refund increased by $1300. That leads me to believe that you can increase your refund by the credit amount. Turbo tax also said I didn't owe any AMT.

The Hybrid tax credit is put on form 1040 on line 55. What line 55 does in decrease your tax liability by that credit amount. So if your tax liability is $5000 and your hybrid credit is $2600 then your net tax liability would be $2400 ($5000-$2600). So when you decrease your tax liability you will increase your refund (or decrease the amount you owe).

Alan I believe my previous post was irrefutable. I believe I confirmed exactly what you said in your previous post.

This has nothing to do with my feelings on if you are deserving of the credit or not.

If I read your post correctly you state that you are not getting the FULL credit because you have ZERO tax liability.

This implies you expect the government to send you a check for the remaining credit even though you did not pay ANY taxes this year. In other words you make money on the purchase of your vehicle. I don't see how anyone can seriously believe that the the government OWES them money when they sent NOTHING to the government this year. This defies logic to me.

I'll be honest here - I don't dive to deeply into my taxes and I can't calculate it yet in Turbo Tax until the form is releaseed on or about the 16th...

On my form 6241 - AMT......
Line 33 = Tentative Min Tax = 12,842
Line 34 = Tax from 1040 = 15,956
Line 35 - AMT = 0

Will I get anything or all of it? I'm confused and reading up on AMT only confuses me more!

Seems the only thing clear here is the tax code is rediculiously confusing. I was planning on trusting my tax returns to a $30 computer program (I sure hope Walla Walla has cells with nice outside views) and run TurboTax after Feb 16.

Wish me luck.

Not just Super White...Super Duper White...

I thought we had lars-ss clear on this at the end of that other "non-refundable" thread.

And once again we are back to him claiming that the credit CANNOT increase the amount of your federal tax refund. Ugh. This is NOT TRUE.

It can absolutely increase your refund if your tax liability is greater than the amount of the credit. Taxes owed on April 15th are not your tax liability, this is the amount is the difference between your tax liability (less tax credits) and the amount of withholding for the year.

Decreasing your withholding will not help the situation - in fact, it might even cost you penalties for underpayment (underwithholding).

RC

Just did my taxes with Turbo Tax this morning. The 8910 for the credit is now there, just labeled "Form Not Final - Do Not File". Based on the numbers in your post, you will get the complete credit as your "regular" tax exceeds the tenative minimum tax by more than the amount of the credit (15,956.-12,842=3,114). Thus if you are entitled to a 2,600 credit your tax bill of 15,956 will be reduced by the 2,600, owing 13,356. No matter how much you had withheld. The difference in my return between the regular tax and the tmt was 5,670 on the Form 6251. The 1040 showed me getting the whole 2600 credit on line 55 thus reducing my overall tax bill by that amount.

I just did my taxes at TaxCut website.

I owed $2389 before my hybrid tax credit, which I then used to reduce my tax liability to ZERO.

Not BELOW zero.

I lost $211 of the credit, which is NOT REFUNDABLE to me.

That's what I warned people about in September - If you are going to OWE taxes at the end of the year, make sure the amount you are going to OWE is MORE than your hybrid tax credit so that you do not lose some of it.

I almost hit it perfect by reducing my withholding in September. Had I waited longer I would have lost more of it.

First of all, where in that interview did you find the section for the hybrid credit? I haven't been able to find it.

Secondly, if you lost $211 of the credit, then you must have had tax credits (including the hybrid credit)/deductions that were nearly equal to the amount of tax liability that you had. If you had NOT changed your withholding in September, you STILL would have lost $211 of your credit. Withholding DOES NOT MATTER in this situation.

The amount that you OWE after calculating your taxes is NOT your tax liability. It is the amount that you must pay to fulfill the part of your tax liability that wasn't covered by your federal withholding.

This is a direct quoted example from the thread you posted in: