Saturday, March 08, 2008

How to take your credit on a hybrid

I feel like a dunce for struggling to figure out how to take the federal tax credit on my new Prius that I bought last year. You might think that the numerous IRS articles on the tax credit for buying a hybrid would reference the correct form to use. Well, if they did, I couldn't find it mentioned. So far as I can tell, it's done using Form 8910, which is used to fill in line 55 of Form 1040. When I first discovered Form 8910, I noticed that Part II of the form refers to business use of the car, which made me think it was a form for business use.

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