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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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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'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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