new car buying in 09 income tax thingy

racerxj17 · 02-09-2010, 03:49 PM

mine was 980.....

vipor · 02-09-2010, 03:52 PM

Quote:

Originally Posted by racerxj17

mine was 980.....

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

racerxj17 · 02-09-2010, 03:56 PM

Quote:

Originally Posted by vipor

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

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

kannibul · 02-09-2010, 04:31 PM

Quote:

Originally Posted by racerxj17

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

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

dad · 02-09-2010, 04:37 PM

Quote:

Originally Posted by 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

I agree, something may not be right! That's a sizeable jump there!

SophiaZ · 02-09-2010, 05:22 PM

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 · 02-09-2010, 05:30 PM

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.

SophiaZ · 02-09-2010, 05:45 PM

D*mn, missed it by 2 weeks

kannibul · 02-09-2010, 08:58 PM

Quote:

Originally Posted by vipor

, and before Jan. 1, 2010. Taxpayers can claim this special deduction only on their 2009 tax returns to be filed next year.

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

Needed new truck. Old truck dying.

PapoZalsa · 02-09-2010, 09:17 PM

Quote:

Originally Posted by dad

I agree, something may not be right! That's a sizeable jump there!

The IRS is going to catch that with no problem.

Dwight Frye · 02-09-2010, 09:31 PM

I used TurboTax also but don't remember the difference the deduction made. All I know is that I live in California and the sales tax went up 1% right before I bought my car and the registration almost doubled. I didn't get squat from this mismanaged state and even if i only got $1 more from the Feds it would be worth it to keep my money out of the hands of the Kleptocrats who are ruining the country.

DIGItonium · 02-09-2010, 11:35 PM

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

VinZ · 02-10-2010, 04:33 AM

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 · 02-10-2010, 12:35 PM

I got around $600.

kannibul · 02-10-2010, 01:10 PM

Quote:

Originally Posted by 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.

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

02-09-2010, 03:49 PM	#16 (permalink)
racerxj17 Track Member Join Date: Apr 2009 Location: Socal Posts: 555 Drives: 09 370z Rep Power: 17	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

02-09-2010, 05:30 PM	#22 (permalink)
vipor A True Z Fanatic Join Date: Aug 2009 Location: Euless, TX [ DFW ] Age: 42 Posts: 13,531 Drives: Nismo 09-0183 QAB Rep Power: 49	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

02-09-2010, 11:35 PM	#27 (permalink)
DIGItonium A True Z Fanatic Join Date: Jan 2009 Location: Kansas Posts: 3,800 Drives: 09 Z34-TT 6MT Rep Power: 42	~$400 here... not bad, it all goes back into savings anyhow. __________________

02-10-2010, 12:35 PM	#29 (permalink)
dszombiex Base Member Join Date: May 2009 Location: Los Angeles Posts: 230 Drives: 09 370z MB 7AT Rep Power: 374	I got around $600. __________________

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02-09-2010, 05:22 PM	#21 (permalink)
SophiaZ A True Z Fanatic Join Date: Dec 2009 Location: South Jersey Posts: 1,463 Drives: 2020 50th anniv 7AT Rep Power: 6733	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

02-09-2010, 05:45 PM	#23 (permalink)
SophiaZ A True Z Fanatic Join Date: Dec 2009 Location: South Jersey Posts: 1,463 Drives: 2020 50th anniv 7AT Rep Power: 6733	D*mn, missed it by 2 weeks

02-09-2010, 09:31 PM	#26 (permalink)
Dwight Frye Enthusiast Member Join Date: Jul 2009 Location: Occupied California Posts: 423 Drives: '09 Tour/Sport/6MT Rep Power: 16	I used TurboTax also but don't remember the difference the deduction made. All I know is that I live in California and the sales tax went up 1% right before I bought my car and the registration almost doubled. I didn't get squat from this mismanaged state and even if i only got $1 more from the Feds it would be worth it to keep my money out of the hands of the Kleptocrats who are ruining the country.

02-10-2010, 04:33 AM	#28 (permalink)
VinZ Base Member Join Date: Jun 2009 Location: Florida Posts: 47 Drives: 2009 370Z PG Sport Rep Power: 16	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.