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Hi All!

My wife and I are thinking of purchasing a 2018 Niro Plug in Hybrid and I can't seem to find any information on it at all when it comes to the tax credit. Does anyone have any information on what the credit is or if there is a federal tax credit for the Niro?

Thank you for any information.

Gary
 

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By what was told to me by my accountant it's a $4500 tax credit on plugin. Now, that's 4500 of you income that is tax exempt or around 750 bucks savings. Not the reason to buy the plug-in.
 

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The tax credit is actually a credit on your taxes, not your income. If your income tax on whatever income is say $5,000, the amount you will owe is $500. A $4,500 savings. An accountant who doesn't know the difference between a tax credit and a deduction is should be canned. "You're fired!"

Some tax credits are "refundable", meaning if your tax paid is zero, the government will send you a check in the amount of the credit. This is not a refundable credit, so your income taxes have to be over $4,500 to take full advantage.
 

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By what was told to me by my accountant it's a $4500 tax credit on plugin. Now, that's 4500 of you income that is tax exempt or around 750 bucks savings. Not the reason to buy the plug-in.
You need a new accountant.

A tax credit is a dollar for dollar reduction in your taxes owed.

What you describe, a reduction in taxable income, is a tax *deduction*.
 

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I checked the EPA list and it only includes vehicles through model year 2017. The Kia Niro PHEV is new for 2018 and I'm sure it will be included once the list is updated for this year.
 

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In California there is a $1500 rebate for 2018 Kia Niro PHEV. Not a tax credit, a straight rebate check.

There are income limits for it in CA...

Annual household income must be at or below the income caps listed below.

  • $150,000 for single filers
  • $204,000 for head-of-household filers
  • $300,000 for joint filers
 

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I'm presently preparing our federal tax return. It appears I need to complete both Form 8936 and Schedule 3 along with Form 1040 in order to claim the tax credit of $4,543 for purchasing a Niro PHEV in July, 2018. Am I correct in my understanding about what forms I need to complete in order to claim the tax credit?
 
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