Hey,

Has anyone done their taxes yet? I like to rush through them in early Feb so I know where I stand. Anyways, Turbo Tax is refusing to give me a tax credit for my 2005 HAH even though I purchased this car in February 2006, I am not subject to AMT and my federal tax liability is greater than the credit ($650). At the end of the check, there is disclaimer that form 8910 is not yet finalized and will not be available until mid-Feb.

I found this...

http://forums.turbotax.com/intuit/bo...e=1&format=all

It discusses the problem. The tax credit is crap. I would have been better off with the deduction that was previously offered.

Anyone else in this situation?

 

Me too.

One doesn't have to be subject to the AMT to have it limit one's total tax credits. The problem is that the total of all tax credits one claims, can't reduce one's taxes to below the AMT amount. Remember, the hybrid tax credit might just be one of several you are eligible to get (Home Energy, Adoption, Child, etc are some of the others).

In my case, that cuts my possible hybrid credit down to only 60% of the full amount.

 

I am using H&R Block's TaxCut Premium. It does let me input my vehicle (HAH) and the credit ($1300) but I cannot actually submit my tax forms to the IRS until the finalised version of Form 8910 is issued.

Fortunately, it does appear that I will escape the AMT trap (by not having enough other deductions) and get the full credit. Still, I can't help feeling bad for all the people who wind up getting a fraction of the credit they thought they were entitled to because of the AMT. If the government were a private business I think there would be a reason to complain about unclear if not actually deceptive advertising concerning the hybrid tax credit.

 

Guys, I am still upset about this. I found a good article that summarizes the problem.

http://www.sfgate.com/cgi-bin/articl...DGC7N75RT1.DTL

Among the more interesting quotes…

“there is a tiny income zone around $80,000 where this (California) family would be entitled to almost the full hybrid tax credit. Otherwise, they will not be eligible for the full credit until their income passes $750,000”

“Conversely, the very best way to escape the AMT and be eligible for a full hybrid tax credit is to earn upward of a million dollars.”

Unfortunately, I have yet to make it that tax bracket.

This one made me laugh in it’s obscurity.

“Childless renters in Texas will also fare relatively well”

Time to write your representative.