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If i don't owe taxes and i purchase a new 2019 toyota Plug In Prius, will i get the 4500 tax break. or do i have to owe taxes before i get it?

Forum|Forum|7 years ago
June 3, 2019
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can you get the rebate even if you are getting money back from the government. for example if i am getting 1000 back and the tax break is 4500. would i get 5500 back. i keep reading all over the internet that if i owed 5000 in taxes and bought the plug in prius that i would get all of the credit and i would only owe 500. is this how it works. i'm trying to figure this out so i know what to put on my W4

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Best answer by DavidD66

The electric vehicle credit is not refundable, so you can't receive a credit greater than what you pay in tax for that tax year. The credit for a Toyota Prius Plug-in Hybrid currently is $4,502. You would have to pay at least that much in federal income tax (after any refund due) in order to receive the full credit. So, if you paid $5,000 in federal tax during the year, and were due a $1,000 refund, then you would be eligible for a $4,000 credit. The credits vary by vehicle.

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DavidD66Answer

The electric vehicle credit is not refundable, so you can't receive a credit greater than what you pay in tax for that tax year. The credit for a Toyota Prius Plug-in Hybrid currently is $4,502. You would have to pay at least that much in federal income tax (after any refund due) in order to receive the full credit. So, if you paid $5,000 in federal tax during the year, and were due a $1,000 refund, then you would be eligible for a $4,000 credit. The credits vary by vehicle.

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