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.

mine was 980.....:tup:

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...

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!

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

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.

D*mn, missed it by 2 weeks :(

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

Needed new truck. Old truck dying.

The IRS is going to catch that with no problem. ;)

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.

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

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.

I got around $600.

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

Pretty sure it's 3 years for personal taxes.

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

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..........?

I did not know about the deduction discussed here - filing my taxes tomorrow. Bought a new car and a new house last year, so I'm expecting a big check from Uncle Sam in a few weeks. Thanks for sharing y'all!

I got $500 extra because of the new Z

Got mine 12/30/2009 too! Made few hundred dollar difference for taxes.

I just did my taxes and deducted the sales tax - resulted in bigger IRS refund :happydance: