New Car Sales-Tax Deduction
Potential car buyers have till the end of the year to grab this above-the-line deduction.

The stimulus lets you write off state and local sales taxes and excise taxes on vehicles, including new cars, light trucks, motor homes and motorcycles bought from February 17 through the end of 2009. You can claim the deduction on your 2009 tax return (which you file next year), regardless of whether you itemize your deductions or claim the standard deduction, which is what most taxpayers choose to do.
If you itemize deductions and normally deduct your state income taxes, you can also claim the new sales-tax deduction for a new car. But if you itemize and choose the option of deducting your state sales taxes (perhaps because you live in a state that doesn't have an income tax), you cannot claim the new above-the-line sales-tax break.
See More From the Stimulus Guide
The New Stimulus Tax Credit
This tax break puts up to $400 in your pocket.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Better Benefits for the Unemployed
Qualified filers get an extra $25 a week.
New Homebuyer Credit
Take up to 10% off your purchase price.
Health-Care Subsidy for the Unemployed
Now there's extra help for paying COBRA coverage.
AMT Tax Relief
Taxpayers get a one-year fix on the alternative minimum tax.
College Aid Gets Fresh Funding
Rather than introduce big new ideas, this bill mostly replenishes underfunded programs and increases amounts available to families.
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

-
Credit One Bank Class Action Settlement: What to Know About the $14 Million Payout
Credit One Bank is settling a $14 million class action lawsuit (paying up to $1,000 per claim) over unauthorized robocalls made between 2014 and 2019.
-
Stock Market Today: Stocks Struggle Ahead of Nvidia Earnings
The three main indexes closed lower as Wall Street awaited the AI bellwether's quarterly results.
-
Want to Lease an EV? The Tax Credit 'Loophole' for That Could Go Away Soon
Tax Credits If you are deciding whether to lease or buy a car, here's what you need to know about the EV lease tax credit.
-
Kiplinger's Tax Map for Middle-Class Families: About Our Methodology
state tax The research behind our judgments.
-
Retirees, Make These Midyear Moves to Cut Next Year's Tax Bill
Tax Breaks Save money next April by making these six hot-as-July tax moves.
-
Estimated Payments or Withholding in Retirement? Here's Some Guidance
Budgeting You generally must pay taxes throughout the year on your retirement income. But it isn't always clear whether withholding or estimated tax payments is the best way to pay.
-
How to Cut Your 2021 Tax Bill
Tax Breaks Our guidance could help you claim a higher refund or reduce the amount you owe.
-
Why This Tax Filing Season Could Be Ugly
Coronavirus and Your Money National Taxpayer Advocate Erin M. Collins warns the agency will continue to struggle with tight budgets and backlogs. Her advice: File electronically!
-
Con Artists Target People Who Owe The IRS Money
Scams In one scheme, thieves will offer to "help" you pay back taxes, only to leave you on the hook for expensive fees in addition to the taxes.
-
Cash-Rich States Lower Taxes
Tax Breaks The economic turnaround sparked a wave of cuts in state tax rates. But some say the efforts could backfire.