If you have recently purchased a Kia, tax credits that are occasionally offered by the federal government could help to save thousands on your federal income tax bill. Whether you purchased a fuel-efficient hybrid Kia or other popular model, a tax credit is always more valuable to you than a standard deduction.
A tax credit can be subtracted from the actual amount of tax you owe to the IRS. On the other hand, a deduction only reduces the amount of income for which you are taxed. Before you attempt to claim a credit for your Kia vehicle, you should seek the advice of an accountant or other financial advisor. However, this convenient step-by-step guide will show you how to find and apply for a money saving Kia tax credit.
What You Will Need
- A Computer that is Connected to the Internet
- A Kia Vehicle that You Can Use For a Tax Credit
- Basic Internet Research Skills
Step 1 - Search the Internet to Find a Kia Tax Credit
In order to use a Kia tax credit to reduce your income tax, you first need to find out if one is available. So, use your favorite search engine to quickly find sites that provide information on current year tax credits. Enter terms like "Kia tax credits" or "tax credits for new cars" and click on the search button. Choose from some of the more popular links to the sites that provide more information on tax credits.
Step 2 - Insure that Your Kia Vehicle Qualifies for a Credit
Just because new car tax credits are available, does not mean that your Kia automatically qualifies for one. So, search for websites that provide detailed information about the types of new car tax credits that are available and the specific makes and models of cars that are eligible.
When reviewing sites that provide information about vehicle eligibility requirements, take note of listed makes and models and if make sure your make, model and engine type is among those reported to qualify for tax breaks for incentives from the federal government. Make sure that your Kia make and model is listed before continuing.
Step 3 - Visit the IRS Website to Get More Information
The IRS website is an excellent source of information on all types of tax credits—even ones for new Kia vehicles. Use the search engine box near the top of the site to find publications that will provide information as to which Kia vehicles are eligible for tax credits and how to go about applying for them. Also making note of any form or worksheet numbers that are included in the publications.
Step 4 - Download the Right Forms and Instructions
Use the form or worksheet number provided on the IRS website to find the correct forms that you will need in order to calculate and apply for the tax credit. Download and print them out.
Step 5 - Subtract the Credit from the Tax You Owe
Follow the instructions that are included on the IRS website or in the forms that you downloaded to accurately calculate the amount of the tax credit for your Kia vehicle. Once you know the amount of the credit, you can then enter it in the appropriate space on your income tax return. Finally, remember to deduct the amount of the tax credit to reduce the amount that you must pay to the IRS.