I purchased a new car in 2012. I am trying to figure out if I can deduct off the sales tax I paid on my Federal and State Taxes ( I live in IL).

Federal: If you itemize deductions on Schedule A you can choose between state income tax and sales tax for your state and local tax deduction. If you choose sales tax you can add the sales tax on a car to the income-based amount the IRS provides in tables.

IL: No. IL doesn't have itemized deductions.

Phil
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