Does the tax credit for buying a hybrid vehicle benefit single people who use the standard deduction?

It's a credit so it directly reduces your tax liability whether you itemize or not.





Keep a couple of things in mind, however. It's limited to a certain production run by each manufacturer. The credits for the Toyota Prius have long run out, for example, because the model is so popular. The other issue is that it's a non-refundable credit, so once your tax liability reaches $0, it's worth nothing more to you.





In most cases, hybrid vehicles are not worth the cost even with the credit taken into consideration. The excess cost of most models would take 8 to 10 years to pay off with the fuel savings.

Does the tax credit for buying a hybrid vehicle benefit single people who use the standard deduction?
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Reply:Yes, the tax credit is totally independent of whether you take the standard deduction or you itemize.