doctorres112

I just wanted to make sure everyone knew about this as most of us should meet the time table for this...
http://www.irs.gov/newsroom/article/...205863,00.html

andyf0

I don't understand why this is a big thing. Living in Texas where we have no state income tax we've been deducting state sales tax for at least the last two years.

Maybe it's because you can deduct the car taxes this year eben if you don't itemize.

NYCGLK

^^^Yet I don't itemize, so extra 3000 deduction results in about 900 less in taxed on your 1040.

andyf0

I paid $2714 in sales tax. Woo Hoo!

HBirdman80

Read carefully. The credit phases out at an income level I assume most MB owners surpass ($135k/yr).

NYCGLK

haha not GLK owners. Plus 135k for individual, 250k for couples.

Another limit is sales tax can be deducted on up to 50k. So if you bought 50k car or 100k car, you will deduct the same amount (assuming same sales tax, and both are within income limit) Again most GLKs are under 50k.

doctorres112

I'm in the Army and I certainly do not make anywhere near that $135k/ individual. Also, we bought two new cars this year during the approved time frame. Not worried about having to pay the IRS but it's always nice to get a little back.