If you missed out on the “Cash for Clunkers” program, that doesn’t mean you still can’t get some money back from the federal government for buying a new car. You can still drive away with a new vehicle and get a tax break if you buy that vehicle before the end of this year.
I.R.S. spokesman Christopher Miller says the break allows you to deduct state, local sales or excise taxes on new cars, light trucks, motorcycles and motor homes. That is for a vehicle costing up to $49,500. Miller says the tax break went into effect early in the year.
Miller says you have to have purchased the new car after February 16th of this or by December 31st. Miller says there are some income limits. He says the deduction for a married couple phases out with incomes of $250,000 or more and for a single person the deduction phases out at $125,000.
Miller says you don’t even have to itemize your deductions to get the tax break — but you do have to purchase the vehicle by December 31. For more information, go to: www.irs.gov.