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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). Thanks for the great help.

Doug
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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
Rule Your Retirement Home Fool
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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).
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That provision expired 12/31/2011, for about the 4th time. It MAY be extended retroactively, for about the 3rd time, but don't count on it yet, and don't look for Congress to act before the election.

Bill
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