| Being environmentally conscience can be an | | | | what comes off depends on where you fall in the |
| advantage when it comes to saving you some | | | | tax brackets. The higher percentage tax bracket the |
| money on your taxes with the fairly new hybrid car | | | | more you will receive from the reduction and vice |
| tax deduction. This is a new provision, since 2004, | | | | versa. |
| under the Working Families Tax Relief Act that allows | | | | If you bought a hybrid car within three years of |
| for a hybrid automobile tax reduction. It can only be | | | | 2004 you can also apply for the car tax deduction. |
| used once, but if you have recently bought one you | | | | Of course this requires going back and modifying the |
| could qualify for the tax reduction. | | | | original claim within three years of the return date or |
| The way it can be taken advantage of is for those | | | | within two years of when any taxes were paid. |
| owners who bought them from the year 2004 and | | | | One good thing about claiming a tax reduction is you |
| 2005 only. There is a limit when it comes to the car | | | | don't have to itemize. You can basically do your |
| tax reduction, and that is $2,000, unfortunately that | | | | taxes as you normally would. The only thing is you |
| will decrease in 2006, when the car tax reduction limit | | | | must use a 1040 form and classified as 'clean fuel'. |
| will only be $500. | | | | Other than that claiming this type of deduction is |
| There are some improvements that are trying to be | | | | relatively simple and in the end can save you a good |
| made in the hybrid car tax deduction. For one thing in | | | | amount of money. As simple as it is, claiming a tax |
| August 2005 a revised energy bill was put into place | | | | rebate is well worth it. |
| to help increase incentives in buying a hybrid car. This | | | | Now that you know what exactly qualifies you for |
| bill helped exceed some of the limitations of the | | | | this type of deduction you can see the benefits far |
| original hybrid automobile tax reduction by creating full | | | | outweigh any effort on your part it may take. Being |
| dollar tax credits, which are an even greater | | | | environmentally conscience can not only help us all in |
| advantage. | | | | keeping our planet clean, but can also help you |
| Going back to the car tax reduction that is in place | | | | personally by saving you money. So why not buy a |
| right now, how much is dependent on the tax | | | | hybrid and save with the hybrid car tax deduction? |
| bracket you fall into. You can claim up to $2,000 but | | | | |