Are there are income restrictions on the Auto Sales Tax Deduction for 2009?

Mandy · #1 (**permalink**) 03-23-2010, 01:49 PM

I was wondering if the IRS had kept an income limitation for the New Vehicle Sales tax deduction for 2009. If so, can you please tell me what that Adjusted Gross Income Limitation is for 2009?

Thanks..!

TaxGuru · #2 (**permalink**) 03-23-2010, 03:26 PM

Well, according to the IRS with respect to the New Vehicle Sales Tax Deduction,there a couple of limitations that apply and these are as follows;

1)the deduction is limited to the taxes and fees paid on up to $49,500 of the purchase price of an eligible vehicle.

2)the deduction is reduced for joint filers with modified adjusted gross incomes (MAGI) between $250,000 and $260,000 and other taxpayers with MAGI between $125,000 and $135,000.

3)taxpayers with higher incomes do not qualify.