IRS Certifies New Prius For $2000 Tax Deduction

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"The Internal Revenue Service has certified the 2004 Toyota Prius as being eligible for the clean-burning fuel deduction. The certification means taxpayers who purchase a new hybrid may claim a tax deduction of up to $2,000 on Form 1040

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Under the law, the one-time deduction must be taken in the year the vehicle was originally used. The taxpayer must be the original owner Individuals take this benefit as an adjustment to income on their Form 1040. They do not have to itemize deductions on their tax returns to claim it. To claim the deduction, write 'clean fuel' on Line 33 of the 2003 Form 1040. Also, see the Instructions for Form 1040."

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