true
Top
  1. TurboTax /
  2. Tax Calculators & Tips /
  3. Tax Tips Guides & Videos /
  4. Tax Deductions and Credits /
  5. Video: The New 2009 Tax Deduction for Car Buyers

Video: The New 2009 Tax Deduction for Car Buyers

Updated for Tax Year 2009 • November 17, 2022 02:18 PM


OVERVIEW

If you bought a new car, motorcycle, RV or SUV this year, a new tax break could help you pay for your next tune-up.


TABLE OF CONTENTS

Note: The content of this article applies only to taxes prepared for 2009. It is included here for reference only.


 

Video transcript:

Hi, I'm Michael Alban from TurboTax. If you bought a new car, motorcycle, RV or SUV this year, a new tax break could help you pay for your next tune-up.

If you purchased your new vehicle between February 17 and December 31, 2009, you could lower your 2009 federal tax bill by deducting state sales tax under the Auto Assistance Ownership Amendment.

Claim the deduction for any or all the vehicles you purchased. Each one is eligible, up to a $49,500 sticker price and 8,500 pounds. Married couples who earn up to $260,000 combined, and individuals who earn up to $135,000, can claim the credit, even if you don't itemize your deductions.

So what's your bottom line? That depends on the car price, the sales tax and your personal income tax rate. Say the new car cost $30,000, a little above the national new car average. If you live in West Virginia, you would have paid 6% sales tax or $1,800. Come April, you can deduct that $1,800 from your taxable income.

Middle-class taxpayers can expect to save somewhere between $250 and $375. Sure, that's a drop in the bucket compared to sticker prices these days, but with gas at an average price of $2.50 a gallon, a $300 tax break should keep you on the road for a few thousand extra miles.

child standing in open window of car

Let an expert do your taxes for you, start to finish with TurboTax Live Full Service. Or you can get your taxes done right, with experts by your side with TurboTax Live Assisted. File your own taxes with confidence using TurboTax. Just answer simple questions, and we’ll guide you through filing your taxes with confidence. Whichever way you choose, get your maximum refund guaranteed.

All you need to know is yourself

Answer simple questions about your life and TurboTax Free Edition will take care of the rest.

For simple tax returns only
See if you qualify

Real tax experts on demand with TurboTax Live Basic

Get unlimited advice and an expert final review. Done right, guaranteed.

For simple tax returns only

Looking for more information?