|
For those thinking about buying a new car this year, a new tax deduction on car purchase may give you a little more drive to make their purchase this year.
To get the tax return deduction mentioned, individuals must purchase a qualifying vehicle between February 17, 2009 and December 31, 2009. The deduction should be taken on a 2009 federal return filed with the IRS in 2010.
Who is Eligible for Car Tax DeductionHere are some facts to keep in mind regarding the 2009 car tax break:
* This deduction can only be claimed on 2009 returns. It is not available on 2008 federal income tax returns. * The IRS noted that even individuals who do not itemize will be eligible for the automobile rebate. If an individual does itemize using Schedule A, there will be space on that form to claim this amount. If the individual does not itemize, the rebate should be added to their standard deduction. * This deduction may be limited by any general sales tax deduction claimed on Schedule A. See the instructions to Form 1040 and Schedule A for more guidance, once they are published for the 2009 tax year. * Only taxpayers up to a certain amount of modified adjusted gross income qualify for this economic stimulus measure. How To Claim Car Tax Deduction
The 2009 tax return forms should be published by the IRS in late 2009, at which time the exact lines to report this car tax deduction will be visible. To access IRS tax forms, go to irs.gov, click on “Forms and Publications” on the left side of the page, then click on “Form and instruction number (PDF).” Search for the updated version of the Form 1040 or other federal income tax return form by typing the form number into the search box. |
Income Tax Guide