The economic stimulus package includes a tax break for qualified individuals who purchase a new car, light truck, motorcycle or mobile home in 2009 (effective after the bill is signed into law).
You can deduct the state sales tax owed on the purchase of a new car provided the car cost less than $49,500. You can claim the deduction if you are single and your adjusted gross income is below $125,000; married couples filing a joint tax return can claim the full deduction if their AGI is below $250,000. The deduction phases out between $125,000 and $135,000 for individuals and for married couples with income between $250,000 and $260,000. Get Suze's new car action step
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