Are You Eligible For A New Hybrid Car Tax Break?
A Hybrid Vehicle is a vehicle that uses two or more distinct power sources to move the vehicle. Hybrid vehicles have drive trains powered by both internal combustion engine and a rechargeable battery.
IRS Federal Income Tax Extension
The Energy Policy Act of 2005 provides a credit for taxpayers who purchase certain energy efficient vehicles, including qualifying hybrid vehicles.
Tax Credit for Hybrid Vehicle
A tax credit is subtracted directly from the total amount of federal tax owed. Taking advantage of this tax credit can reduce the amount of tax you owe or it may even eliminate it altogether.
The hybrid car tax credit for vehicles applies to vehicles purchased or put into use on or after January 1, 2006. Keep in mind, only the original person who purchased the vehicle will get to claim the hybrid tax credit. The vehicle must be predominately used in the United States.
Qualifying Hybrid Vehicles For Tax Break
For a comprehensive list of qualifying vehicles, I suggest you consult the IRS website. You may want to try an online tax preparation software company like Turbo Tax Online.
You can use their calculator to see if you get the full hybrid tax credit for the hybrid car you entered on the return. Don’t worry you don’t pay unless you decide to file the income tax return. Trying the software to run your numbers will show just how easy it is to use their website.
Tax Credit Amount For Purchasing Hybrid Car
The hybrid tax credit amount can be as high as $3,400. Of course the amount varies depending on what type of vehicle you purchase. Make sure it is a qualified hybrid vehicle that will allow you to take advantage of the tax credit.
Capital Loss Carry Forward
You may also want to look into purchasing in the first quarter of the year because as each consecutive quarter rolls around the tax credit percentage goes down.
Claiming Your Hybrid Tax Credit
If you want help making sure you’ve done everything right to claim your tax break for the purchase of your hybrid vehicle, then use TurboTax Online to prepare your income tax return this year.
You are guaranteed to receive the biggest refund possible and believe me, their amazing software will not miss one deduction you deserve to claim. Every year millions of dollars are not deducted from taxpayers income tax forms because they didn’t know they were entitled to take the deduction. Don’t let this happen to you! Claim your Hybrid Car Tax Break Today!