Kate <cbotella[at]aol.com> wrote:

- quote -

Nonrefunadble, and the 1040 designers will decide the line
number.

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

Kate wrote:

- quote -

The Alternate Motor Vehicle Credit (for vehicles placed in
service AFTER 2005) is NOT a refundable credit and may
provide no tax benefit if your tax liability (before
credits) is zero or is reduced to zero by other credits on
Lines 47 to 54 on form 1040. See Pub 535, Chapter 12 for
additional info.

The Credit is calculated on Form 8910 and the result is
entered on Line 55 of form 1040.

Note: The above is for 2006 and after. For 2005 and before,
the tax treatment is different. Clean-fuel vehicles
(including certain hybrid cars) were allowed an
above-the-line deduction (adjustment to income), which was
included on Line 36 of the 1040, using the dotted line to
the left to enter the amount.

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

Is the hybrid electric car credit refundable or does it just
take your tax liability down to zero and you lose the rest?
Also, on what line of the 1040 do you take this credit?

Kate Botella, EA
Warrington, PA

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >