Who Can Claim General Sales Tax Deductions In The US ?
Washington residents may deduct their sales taxes in their 2009 and 2010 if they itemized deductions. You can claim a state and local sales tax deduction over up to $49,500 of the purchase price of a new car, motorcycle or motor home. |
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Light trucks with a gross vehicle weight rating of 8,500 pounds or less are also eligible for the deduction. You can spend more than $49,500 if you like, but the deduction is limited to the sales and excise taxes on up to that amount. The vehicle does not have to be your primary vehicle. You can claim the deduction on as many vehicles as you purchase, as long as they qualify.
You can claim the total sales taxes you actually paid based on the amounts shown on your receipts. Just be sure to hang onto those register tapes in case the Internal Revenue Service has a question about how you arrived at your deduction amount. Sales tax deduction tables are based on the average consumption by taxpayer. It takes account of the filing status, number of dependents, adjusted gross income and rates of the state and local sales taxation.
Taxpayers should make sure that they use the sales tax deduction which gives them the big break. There is a new law for sales tax deduction by the American Recovery and Reinvestment Act 2009 which states that there will be federal tax deductions on the purchase of vehicles brought from February 17 to December 31. It is important to look for the big breaks in sales tax deductions.
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