2011, 2012 Automobile Tax Credit

As part of the new stimulus package, there will be incentives for taxpayers that purchase a new qualifying vehicle. This incentive is also referred to as the auto assistance ownership amendment.

This new automobile tax credit will provide deductions you can claim in a number of different ways:

It will provide deductions from both your state and local taxes on taxes paid on the vehicle purchase that was purchased for less than $49,500.00. If the vehicle costs more than this you can still deduct the sales tax on the first $49,500.00 of your purchase.

The deduction will be available for qualifying SUV’s, light trucks, cars, and some other types of vehicles that weigh less than 8,500 pounds.

If you live in a state that doesn’t impose sales tax then this tax will not work for you but in exchange for missing out the government will let you deduct some other types of qualifying fees for the purchase of the vehicle.

States That Do Not Have Sales Tax

The following states do not impose sales tax:

• Alaska
• Delaware
• Hawaii
• Montana
• New Hampshire
• Oregon

Eligibility Dates

To claim the vehicle tax credit you must have purchased your vehicle between February 17, 2009 and December 31, 2009. This means that the sale must be completed by the expiration date.

In order to claim this credit you will need to itemize your state tax return.
TurboTax Online offers all of the forms necessary to claim this credit and will guide you through the process to make itemizing as easy as 1, 2, 3...