- Personal Finance
Car Tax deduction and Other Most Overlooked Tax Deductions - (2009-2010)
Car Tax Deduction 2009
After my article on Free Tax Return Estimation Software,
this hub talks about car tax deductions for 2009. Here are the facts
1) In 2009, you get a tax deduction for almost all new-car purchases .
2) To qualify, you must buy the new vehicle — not lease it — from 17 February, 2009, through 31 December, 2009.
3) The ARRA (American Recovery Act) of 2009 allows taxpayers to deduct state and local sales and excise taxes paid on up to $49,500 of the purchase price of new cars, light trucks, motor homes and motorcycles.
4) There is a reduction of deduction for joint filers with modified AGI -adjusted
gross incomes between $250,000 and $260,000 and for other taxpayers with modified AGI between $125,000 and $135,000.
Taxpayers with higher incomes do not qualify.
5) This special deduction is available even for taxpayers who do not itemize deductions.
6) When itemizing, report that sales tax on Schedule A.
7) If you are not itemizing, report the sales tax for new-car purchases on Schedule L.
List of Most Overlooked Tax Deductions
I wanted my hub readers to have a collection of the best articles for overlooked tax deductions. Here's the list:-