rich50

tax on my 2009 taxes with my F150!

Yipee

RoushNitemare

lol congrats

sixsix

So is it for the whole amount of tax or just a portion? I bought 2 cars last year so I should get 2 credits.

johnwill

It is actually a tax deduction not a tax credit.

A tax credit gives a person a dollar for dollar credit against their taxes in the amount paid (in this case sales tax). If you paid $1,000 in sales tax, you would see your 2009 tax reduced by that $1,000 and therefore would get $1,000 more back when you file your return, or owe $1,000 less when you file your return.

This is a tax deduction which is a deduction against your income. So, if you paid $1,000 in state sales tax on vehicle, you would reduce your 2009 income by $1,000 and, depending on your income tax rate, you would save some monies. If you were being taxed at 20%, you would save $200.

Some will sniff at the smaller amounts than they thought, but I say better than nothing, especially if you were going to buy the great truck anyway.

Thanks

kmac1036

there should be a line item where you add up the sales tax paid on buying new cars. you can only deduct the taxes for the first $49,500 for each vehicle bought & is phased out over a certain income level (125-135k for single filer, 250-260k for joint filers).

both our car & truck total, didn't go over 49k, so yeah, we're deducting it all

http://www.irs.gov/newsroom/article/...205863,00.html

johnwill

Yup. That would be line 7, Schedule A.

compCoder

put this deduction on my return as well, and since we have a seperate deduction for our state sales tax in texas, it went towards that too, though in the end, the standard texas sales tax deduction was still better, but still got the deduction for taxable income from it!!!

Stevegud1

Yeah, I sure took it as though I could deduct the entire amount, as though it were a credit...was a bit bummed when I figured out that I'd only get ~30% of that, but oh well. The difference wouldn't have changed my mind on the purchase...

All Hat No Cattle

We covered this about 3 weeks ago, here is the link. it also addresses property tax deductions.

https://www.f150forum.com/f38/deduct...e-taxes-40310/

What makes this different for 2009 only, is that if you take the standard deduction without itemizing, you can add these deductions on top.

Part of the 2009 Stimulus bill Package, enjoy it while you can.

johnwill

Good point and distinction to make and remind folks about. Usually non-itemizers cannot get their beaks wet on some great deductions. Thanks for the reminder on this.