User avatar
akohekohe
Posts: 111
Joined: Mon Jun 28, 2010 8:36 pm
Location: O'ahu

1099 from the State of Hawaii for Electric car rebate

Thu Jan 26, 2012 1:36 am

Got a 1099-Misc from the State of Hawaii, Hawaii Electric Vehicle Ready Rebate Program today listing the $5,000 rebate I got for my Leaf as other income. Does anyone have an opinion on whether or not this is taxable income? I think not, but I've been known to be wrong on rare occasions.

KillaWhat
Posts: 866
Joined: Thu Feb 23, 2012 5:15 pm
Delivery Date: 15 Mar 2012
Location: Southeast Pennsylvania

Re: 1099 from the State of Hawaii for Electric car rebate

Fri Apr 06, 2012 7:57 pm

It is absolutely taxable income.
That's why you rcvd a 10:99 misc :geek:

The fed also got a copy :geek:
Black SL Delivered 3/14/2012
7.2Kw Charging w/Brusa
Leather Interior
Rosewood Dash
JUKE 17" Wheel Upgrade w/225-45-17 Michelin MXM4 Tires
Horn Upgrade
Infinity 63.9i Speaker Upgrade
WattsLeft Meter System
LED High Beams
Carkit NAV Override

User avatar
ttweed
Posts: 1088
Joined: Tue Sep 07, 2010 8:31 am
Delivery Date: 01 Apr 2011
Leaf Number: 1317
Location: La Jolla, CA
Contact: Website

Re: 1099 from the State of Hawaii for Electric car rebate

Sun Apr 08, 2012 8:32 am

That's odd--there were no 1099s issued for the CA state rebate. What was the source of funding for the HI rebate? How could two states interpret the IRS code for the same issue so differently?

TT
Tom Tweed
La Jolla, CA
Plowshare Media
2011 SLe #1317 del. 4/1/11
1st bar lost at 31,953 miles
2nd bar lost at 38,685 miles
3rd bar lost at 50,711 miles
4th bar lost at 59,758 miles after 64 months
Battery replaced at 61,307 miles.

koolaukid
Posts: 23
Joined: Wed May 11, 2011 10:16 am
Delivery Date: 01 Jan 2011

Re: 1099 from the State of Hawaii for Electric car rebate

Sat May 26, 2012 11:11 am

Due to time constraints my accountant filed my taxes with the Hawaii EV incentive rebate as income. She has stated that this isn't correct and the rebate, if anything, should be considered a price reduction, she doesn't quite understand the reasoning for calling this "income".

After calling the state and speaking to a series of people that seem not to know much she gave up, it was crunch time.

But she has continued looking into it and promised to file an amended for free when she gets the correct info.

Only in Hawaii!

User avatar
akohekohe
Posts: 111
Joined: Mon Jun 28, 2010 8:36 pm
Location: O'ahu

Re: 1099 from the State of Hawaii for Electric car rebate

Tue Jul 10, 2012 2:47 pm

It turns out it is taxable income. I talked to the IRS and the explained that because the rebate was paid by someone other than who I was purchasing the vehicle from it is taxable income. If it was a Nissan or dealer rebate it would have been considered a reduction in price. There is an exception in the law however for rebate paid by a utility for the purpose of reducing energy consumption. This is why the $50.00 rebate you get from HECO when you buy an energy star refrigerator is not taxable income. So, if the State had simply asked HECO to set up the rebate program and then reimbursed HECO for the rebates we could have received the rebate tax-free. Did our Governor (Lingle) think of that? Obviously not.

arnolddeleon
Posts: 125
Joined: Wed Apr 21, 2010 3:58 pm
Delivery Date: 25 Jun 2011
Leaf Number: 4147
Location: Cupertino, CA

Re: 1099 from the State of Hawaii for Electric car rebate

Tue Jul 10, 2012 10:05 pm

Just because you receive a 1099-MISC doesn't make it automatically taxable. OTOH not receiving a 1099 doesn't make something not taxable either.

10 years ago those of us that received the rebates from the state of CA received 1099-MISC and I'm unaware of anyone who didn't pay taxes on that was challenged for it. Put simply, we didn't pay taxes on it and that was just fine. Thankfully when buying the leaf this around I didn't have have deal with 1099-MISC but if I did I would have handled it the same way.

My accountant did point out that if IRS has the information then it should show up somewhere in your tax return but that doesn't mean you have pay taxes on it.

I'm not lawyer or a tax accountant and this advice is worth everything you paid for it.

arnold

smkettner
Posts: 7003
Joined: Mon Aug 09, 2010 10:13 pm
Delivery Date: 26 Feb 2014
Location: Orange County, CA

Re: 1099 from the State of Hawaii for Electric car rebate

Wed Dec 23, 2015 2:34 pm

I would be very tempted to take a business deduction for the value to offset the amount and maybe more.
1 bar lost at 21,451 miles, 16 months.
2 bar lost at 35,339 miles, 25 months.
LEAF traded at 45,400 miles for a RAV4-EV

Return to “Local / Regional Discussions”