Thursday, April 2, 2009

Who Else Wants A Tax Credit ?

So who would of thought that Washington DC would allow taxpayers who buy a new vehicle this year are entitled to a tax credit. Yes this is true, any taxpayer is entitled to deduct, state & local sales & excise taxes paid on the purchase on their 2009 return next year.

Yes this will give those taxpayers more incentive to buy now and get cash back later on their returns. Therefore the taxpayers can afford to purchase ahead of time to make their purchase this year. However, there is a limitation to the state & local sales and excise tax. These tax credit's do not apply to those purchasing over a $49,500 car, light truck, motor home or motorcycle.

The amount of the deduction does not apply to those making an Adjusted Gross Income between $125,000 and $135,000 for individual filers and between #250,000 & $260,000 filing joint. One point the IRS made also alerts taxpayers that the vehicle must be purchased after February 16,2009 and before January 1, 2010 to qualify for the deduction.

Although the deduction can't be taken on their 2008 tax returns, the deduction is available regardless of whether you itemize deductions (schedule A).

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