I read the insert below and found out I cant get my taxes back. Please tell me I am missing something!?
Read this excert earlier today in an article. Note, I bought my car in January 2009 figuring I would get something back taxwise this year. How can I be left out because of one month out of the year?
PLEASE SOMEONE EXPLAIN TO ME. aLSO, I LIVE IN TENNESSEE IF THIS HELPS…??
Sales-tax deduction for new vehicles. If you bought a new car, truck, motorcycle or motor home after February 16, 2009, and before the end of the year, you can deduct the sales tax paid — up to a maximum purchase price of $49,500 per vehicle — either as an itemized deduction or, if you claim the standard deduction, as a supercharged standard deduction. The benefit begins phasing out for married couples with adjusted gross income over $250,000 and singles with AGI over $125,000, and it is completely gone for single filers with AGI of $135,000 or more and joint filers with AGI of at least $260,000. Nonitemizers need to file a Schedule L with their return to get the benefit; itemizers who elect to deduct state income taxes will claim the car sales tax as a separate itemized deduction.
(Note: I bought my car January 2009, is that an issue?)
1. It’s a tax DEDUCTION, not a refund of the tax. If you’re a typical taxpayer in a 15% bracket and paid $1,000 in sales tax it would save you about $150, more or less depending upon where you sat on the bracket.
2. You bought BEFORE the effective date of the law, so you are not eligible to claim it. That is VERY plainly stated in your question. So, yeah, buying in January of 2009 is an issue as it disqualifies you for the special deduction.
Note: If you itemize deductions and deduct state sales taxes instead of state income taxes then you can add the tax that you paid on the car to the sales tax table amount in the Schedule A instructions if you are not using the actual provable amount of tax that you paid for the year.
This is the new car tax credit which you deduct on your 2010 return. It applies to cars bought after February 16th. It does not say what kind of deduction you get, only that your income must be under a certain amunt for 2009.
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Yep, you get left out because of the way the proposal was written.
It is QUITE specific that the purchase HAS to be AFTER February 16!
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all too often tax laws are written for a special group, altho this is actually against the law, they manage to word it in such a way that it isn’t determined to be discriminatory
probably the Feb date was because Obama felt something needed to be done for the car industry, as you well know
the date is specific
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The special deal does not apply to you due to the cutoff date. The cutoff dates reflect when Congress passed and signed the bill. Tax bills are rarely retroactive. Since the didn’t law didn’t on the day you bought the car, technically you didn’t lose anything.
However, if you already itemize and claim sales tax on schedule A, you can add the sales tax from buying a car–new or not–to the total. (The special deal was that you could deduct the tax whether or not you itemized if it was a new car.)
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1. It’s a tax DEDUCTION, not a refund of the tax. If you’re a typical taxpayer in a 15% bracket and paid $1,000 in sales tax it would save you about $150, more or less depending upon where you sat on the bracket.
2. You bought BEFORE the effective date of the law, so you are not eligible to claim it. That is VERY plainly stated in your question. So, yeah, buying in January of 2009 is an issue as it disqualifies you for the special deduction.
Note: If you itemize deductions and deduct state sales taxes instead of state income taxes then you can add the tax that you paid on the car to the sales tax table amount in the Schedule A instructions if you are not using the actual provable amount of tax that you paid for the year.
References :