How will the New Car Tax deduction work for me?
April 24th, 2010I bought a 2009 Potiac G6 in May of 2009 so I qualify for the New Car Tax deduction (NOT talking about Cash for Clunkers here). I make a good wage for a single person but never end up having to pay in additonally at the end of the year for taxes and always have gotten a tax return. How will this tax deduction work for me? Will I just get a larger return?
Replys
You can deduct the sales tax that you paid on the car as an above-the-line adjustment even if you don’t itemize or even if you do itemize and deduct state income taxes instead of state sales taxes.
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