Hybrid Car Tax Credit?

Question

I bought a hybrid in 2006 thinking I would get the tax credit. However, after doing my taxes, I am getting most of my money back due to only working part of the year and real estate tax deductions. Next year I think my income will be higher. Can I wait and take the credit next year? How will someone know I purchased in 06 and not 07? I bought the car factoring in the credit, dont want it wasted.

Answer 1

http://www.irs.gov/newsroom/article/0,,id=157632,00.html

This is from the irs website. You can click on this and the link to the car you purchased. The dealership is supposed to keep updated as to how many of a certain model are still available for the credit.....

good luck

Answer 2

The credit reduces taxes owed in the year of purchase. So, you can't wait to take it next year.

In addition, the amount of the credit depends on the day you bought the vehicle, and there may be no credit available on the model you bought in 2007.

Answer 3

You have to take the credit in the year you bought the car. You're supposed to provide purchase information on the car. You may get away with it, but you may find that adding the 'hybrid car' credit opens you up to Audits.

Answer 4

You can only claim the credit in the year you actually made the purchase. How would someone know? The same way they'd know if you actually purchased it at all - if you're asked by the IRS to show proof, your receipt would have the wrong year on it for your claim if you claimed it for 2007.