The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies


Subject:  Re: New Car Date:  7/3/2012  12:14 PM
Author:  TMFPMarti Number:  116388 of 129779

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.

Rule Your Retirement Home Fool
Copyright 1996-2019 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us