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Step 1
States with Sales Tax
If you live in a state with sales tax, you are already receiving a deduction for the sales tax paid when you file your federal income taxes each year. This amount is calculated for you based on where you live, your annual income and the number of exemptions you claim. What most people do not know, however, is that if you make a large purchase such as a car, truck, motorcycle, or recreational vehicle, the sales taxes paid can be added to the standard sales tax deduction to increase it dramatically. Simply save your receipt for the purchase and add it to your standard sales tax deduction at the end of the year. -
Step 2
States with Sales Tax Simplified
To simplify the sales tax deductions explained in step one, there is a simple IRS calculator that will help you find the amount of sales tax that can be claimed from the purchase of vehicles in the resource section below. -
Step 3
In States with NO Sales Tax
Beginning in 2009, you can claim a deduction on fees and taxes paid in your state for the purchase of cars, trucks, motorcycles, and other recreational vehicles. You must purchase the vehicle after February 16, 2009, and before Jan. 1, 2010. Any taxes or fees or taxes paid for a purchase up to $49,500 qualify. To qualify you must also earn less than $135,000 for single taxpayers and $260,000 for married taxpayers. Additional information is available in the resource section below.
