new car buying in 09 income tax thingy

racerxj17

mine was 980.....

__________________
2009 PW Sport/Touring/Nav M6
Stillen Gen 3 Intake/CBE/Berk HFC/BC BR Coil over/Phillips 6500k/Hotchkis Sways/Stillen oil cooler/B&M SS

vipor

Total refund or just the tax credit from buying your car?

__________________

2009 NISMO # 0193 | QAB | Albums! | 05.04.10 (Dynojet) 291.94hp/248.28tq
Oil Cooler (DIY) | Custom Headlights | GTSPEC Braces | F.I. Long Tube Headers

racerxj17

tax credit......went from 1800 to 2680 after i entered my car..... turbo tax...

__________________
2009 PW Sport/Touring/Nav M6
Stillen Gen 3 Intake/CBE/Berk HFC/BC BR Coil over/Phillips 6500k/Hotchkis Sways/Stillen oil cooler/B&M SS

kannibul

You're doing something wrong, unless you make very little income and it just basically knocked out on your federal.


There is no tax credit for buying a car. It's a deduction. Perhaps you're taking into account the Making Work Pay tax credit where you weren't before?

$400 ind / $800 couple

SophiaZ

Wait...you'll get more tax money if you bought a new car in 09? I may have misread this thread. If so...Oops never mind haha

vipor

The deduction is limited to the state and local sales and excise taxes paid on up to $49,500 of the purchase price of a qualified new foreign or domestic cars, SUV's, light trucks, motor homes or motorcycles that weigh no more than 8,500 pounds. You can still buy a qualifying vehicle for more than $49,500 (e.g a $80,000 BMW per a commenter's question below), but you will only get a tax deduction up to the specified limit.

The deduction is only available to families making less than $260,000 (or $135,000 for single filers). It is phased out for taxpayers whose modified adjusted gross income is between $125,000 and $135,000 for individual filers and between $250,000 and $260,000 for joint filers.

The new vehicle must be purchased on or after Feb. 17, 2009, and before Jan. 1, 2010, to qualify for the deduction. Purchases before Feb. 17, 2009, are not eligible for this special deduction.

How to claim the tax deduction : The deduction is available regardless of whether a taxpayer itemizes deductions on their return (Schedule A). The deduction cannot be taken on 2008 tax returns (even if they are amended or filed late), so must be claimed when they file their 2009 returns in 2010. Also, unlike other tax credits in the economic stimulus package this tax break is not an offset to your federal taxes (i.e. a tax credit), it is a deduction against your taxable income. Taxpayers who take the standard deduction need to complete Schedule L and attach it to tax forms 1040 or Form 1040A to increase the standard deduction by the allowable amount of state or local sales or excise taxes paid on the purchase of the new vehicle. Also, check the box on line 40b on Form 1040 or line 24b on Form 1040A. Individuals who itemize should include the allowable amount of state or local sales or excise taxes from the purchase of the vehicle on Form 1040, Schedule A.

To illustrate the above tax deduction, consider the following example from a commenter. The average new car purchase price the first 11 months of last year was $28,280, and the average used car trade-in value was $15,203, according to data from the National Automobile Dealers Association.

States typically tax the difference — $13,077 in this case. So a 5% sales tax rate would be $654, meaning the deduction would reduce taxable income that much. Each state has a different car sales tax, so the deduction will vary by state.

States without new car sales tax: The IRS and treasury have recently determined that purchases made in states without a sales tax – such as Alaska, Delaware, Hawaii, Montana, New Hampshire and Oregon – can also qualify for the new car tax deduction. The IRS stated taxpayers who purchase a new motor vehicle in states that do not have state sales taxes are entitled to deduct other fees or taxes imposed by the state or local government. The fees or taxes that qualify must be assessed on the purchase of the vehicle and must be based on the vehicle’s sales price or as a per unit fee.

“This special tax break is available for people purchasing a new car this year, and that can include people in states without a sales tax,” said IRS Commissioner Doug Shulman. “This means that more people can take advantage of this deduction when they file their tax returns next year.” To qualify for this deduction, the vehicle must be purchased after Feb. 16, 2009, and before Jan. 1, 2010. Taxpayers can claim this special deduction only on their 2009 tax returns to be filed next year.

__________________

2009 NISMO # 0193 | QAB | Albums! | 05.04.10 (Dynojet) 291.94hp/248.28tq
Oil Cooler (DIY) | Custom Headlights | GTSPEC Braces | F.I. Long Tube Headers

kannibul

..and I bought my truck on Jan 2 2010. Oh well.

Needed new truck. Old truck dying.

Nikon FM

Thanks for posting the information!........... but the quoted part bites. I too missed this by a few weeks.

__________________

Buddy Revell: "One man's sooner is another man's later"

BlackCherryZ

i made the deal on the last wk of december, signed it on Januray 1, 2010, and got the car a wk later...........

so, technically i am not qualified for the deduction?

or can i claim it for next year..........?

SophiaZ

D*mn, missed it by 2 weeks

DIGItonium

~$400 here... not bad, it all goes back into savings anyhow.

__________________

VinZ

What do u need to prove u bought a car or motorcycle in 09 when filing? The sales receipt? I bought 2 cars and a motorcycle last year.

dszombiex

I got around $600.

__________________

kannibul

You don't have to send anything in, but whatever proof you have you better keep for 7 years in case you get audited.

vipor

Pretty sure it's 3 years for personal taxes.

__________________

2009 NISMO # 0193 | QAB | Albums! | 05.04.10 (Dynojet) 291.94hp/248.28tq
Oil Cooler (DIY) | Custom Headlights | GTSPEC Braces | F.I. Long Tube Headers