--- In [email protected], "Bart <[email protected]>"
I just got off the phone with the IRS and the following is the method for filing. LINE 32 in the 2001 form was correct, however, is incorrect for the 2002 form, and should read line 34 (the document is wrong from the IRS, and was not
updated for the change in the 1040 form)
Here it is:
can not use 1040-A or 1040-EZ
Publication #535 pg. 46 addresses this (but has an error).
Claim through FORM 1040
LINE 34 States:
Add lines 24 through 33a ....................  _________
On Line 34 - add the $2000 into the total and write the new total in the space provided.
Write on the dotted line: Clean Fuel $2000
If your total for lines 24 through 33a was ZERO, this is what the line
would look like:
Add lines 24 through 33a ...Clean Fuel $2000.....  __$2000______
But my last read on the topic was that the deduction was set to expire in 2003? If so, you'd had to have purchased your Insight by December 31, 2003 to qualify.
You simply write "clean fuel" on the "other deductions" line (whichever it happens to be for the current year tax return) and $2000. Only once for a given vehicle -- if yours was purchased used then it is unlikely to qualify.
"The IRS has determined that consumers purchasing a new Honda Insight, Honda Civic Hybrid or Toyota Prius by the end of 2003 are eligible for a "Clean-Fuel" vehicle tax deduction of up to $2,000. The current incentive is scheduled to phase out in 2004-06. Vehicles purchased in 2004 will be eligible for a deduction of up to $1,500; vehicles purchased in 2005 will be eligible for up to $1,000; vehicles purchased in 2006 will be eligible for up to $500."
Congress tends to push the phase-out back year after year.
If you use TurboTax, you can enter it manually in the appropriate line. However, at least in my case (it may have been my own stoopidity), the program would not allow electronic filing when I did that. I had to print the darn thing and use snail mail to file. Your filing may vary