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