new car buying in 09 income tax thingy
 

just finish doing my income tax
for the new car buying in 09 income tax thing
i file single and no dependents and i get only about $300 more difference
just wonderin how much difference some of you guys be getting?

Haven't filed yet..

:iagree:

Depends on one's taxable income, which determines his bracket, which will determine the amount of actual tax savings. Still a worthwhile benefit and incentive to purchase.

I just read that you can claim the sales tax on a new car on top of the standard deduction. Hopefully I get some extra monies.

from what i've read, i think they allow you to deduct the tax paid from your taxable income so you are taxed on less, which would yield you a better return. unfortunately they dont pay you the sales tax back :( some is better than none i guess.

$200 difference for me.

Something is better than nothing, with that said we bought two new cars this year. heading to the tax man this weekend.

Cpa prepared my return already... forgot to mention the Z. He's not going to be happy. :S

In a sense, that's how it works.

It increases your deductions, making your taxable income less, then your taxes are based off that lowered income, and compared against what you paid.

Right. The energy efficiency home improvements create a tax credit. This is only an income tax deduction for the amount of the sales tax paid.

Actually, the deduction itself is the same...based on a formula. If you make something like 250K/yr or more, then it's pro-rated. Same if the vehicle price is over a given amount.


The final outcome on your taxes depends on what you paid in, your tax bracket, etc, just as before - just now you can deduct the tax paid on the vehicle.

Maybe since I bought a car that's supposed to be way out of my price range I'll get more back :D Here's hoping taking a pay cut to help out a start up company actually helps me somehow...

put an ad on your car and write it off as a business expense: "company vehicle"

:D

if that works, you owe me a beer!

Mine was about $300-$400. Don't recall exactly, but hey every little bit counts. I just barely made it, did the paperwork on mine 12/30/09.