Online Taxes   |   Expert Advice  |

E-File your taxes and get real time expert advice

The largest online tax questions and answers database.
Everything about tax deductions and tax credits.

 Tell a friend



Sales Tax Deduction for Vehicle Purchases

Under The American Recovery and Reinvestment Act taxpayers can deduct state and local sales and excise taxes paid on the purchase of new cars, light trucks, motor homes and motorcycles. The deduction is limited to new (as apposed to used) vehicles purchased from Feb. 17, 2009, through Dec. 31, 2009 and only for the sales tax on the first $49,500 of the purchased price , to use it in your tax return, please click here.
The deduction is phased out for taxpayers filing a joint return with modified adjusted gross incomes (MAGI) between $250,000 and $260,000 and completely disallowed if the MAGI is over $260,000. The deduction is also phased out for other taxpayers with MAGI between $125,000 and $135,000 and completely disallowed if the MAGI is over $135,000.Where do I report Sales Tax Deduction for Vehicle Purchases? This deduction is not part of the itemized deductions and can be claimed by a taxpayers who claim standard or itemized deductions on IRS form 1040, Schedule A, Line 7.
Back to Table of Content   |   Questions About This Topic?
Tax Questions:     Ask your question

No Questions Found. Refine Your Search.

list of tax deductions, tax deductions, tax deduction, free tax deduction, free tax deductions, best tax deductions, most common tax deductions
tax credits, tax credit, list of tax credits, free tax credits, free list of tax credits, best tax credits, most common tax credits