I bought my Prius 12-30-09. It's a 2004, do I get some sort of rebate or can I just deduct my sales tax from here in Orange County, CA?
The special deduction was for new cars only, but read the instructions carefully for the general sales tax deduction on the itemized schedule a (my recollection is that you can use the table or actual, or maybe even a combo of both). Here's the IRS info on the special sales tax deduction: To qualify for this deduction, the vehicle must be purchased after Feb. 16, 2009, and before Jan. 1, 2010. Taxpayers can claim this special deduction only on their 2009 tax returns to be filed next year. The deduction is limited to the fees or taxes paid on up to $49,500 of the purchase price of a qualified new car, light truck, motor home or motorcycle. The amount of the deduction is phased out for taxpayers whose modified adjusted gross income is between $125,000 and $135,000 for individual filers and between $250,000 and $260,000 for joint filers. The special deduction is available regardless of whether taxpayers itemize deductions on their returns. Taxpayers who do not itemize will add this additional amount to the standard deduction on their 2009 tax return.
So, I am just about to file my taxes now. I purchased a 2010 Prius for appx. $26,000 in August 2009. Me and my wife's joint income is $100,000. This will only be my third time filing taxes ( I just graduated from college 4 years ago), so I'm still new to all of this...do I qualify?
short answer is yes. longer answer is it may not make any difference if you itemize, since we Texans can deduct sales tax on schedule a.
Tax advice from strangers on a car chat site is a dangerous game. Perhaps you should consider talking to a tax expert.
Buy Turbo tax and just answer the questions it knows about this deduction and applies it correctly. In California you will want to use this deduction since we also pay State income tax and can't normally deduct sales tax.
Well the OP does not qualify since he bought a used car, so be careful what answers you feed TurboTax. ggood nailed the answer, and then some. But your point is well taken: consult your tax advisor...
No worries. He is. There are enough Accountants here that if bad advice is given it will be noticed and corrected.
