A car dealer told me to "hurry in" and take advantage of the Obama 2009 tax credits. What was he talking about?
In CT, we don't pay sales tax on the Prius, so no deduction. If I recall correctly, it is a deduction off your AGI. The saving is really less than $300-400. I wouldnt lose sleep over it
The benefit is a deduction. Calling it a credit is a serious misrepresentation, bordering on fraud. In general, deductions are worth much less than credits. And for many of us who were unemployed most of the year, deductions this year are worth very little. I went for my state's 'hybrid' sales tax exemption instead. It was equivalent to a real credit.
The IRS is calling it deduction, so no misrepresentation on their part. It's just news sites and people who don't know any better that are labeling it credit.
