Saturday, October 31, 2009

Car tax credits?

Anyone know how to claim the tax paid on purchasing a new car (NON-hybrid) on your tax form? I%26#039;ve heard that you can deduct the taxes you paid in a calendar year if you purchase a new vehicle (one that is personal, not for business) but I%26#039;m not sure how to claim it, or if it%26#039;s legit. Searched to no avail. Any info appreciated. Thanks.



Car tax credits?

You must be itemizing your deductions rather than claiming the standard deduction. To claim the sale tax paid it is reported on line 5 of the Schedule A. You have a choice of claiming State and Local Sales Tax or State and Local Income Tax.



If you are not itemizing this would not be claimed on your tax return



Publication 600



http://www.irs.gov/newsroom/article/0,,i...



Car tax credits?

If you are itemizing you can deduct state and local income tax or state and local sales tax but not both. There is a table you can use based on gross income. In addition certain items such as sales tax on cars can to added to the amount in the table.

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