News Now

Consumer
New-car tax credit now applies in all states
BOSTON (6/22/09)--That new-car smell just got better, thanks to legislation that provides tax incentives to new-car buyers. The U.S. Department of Treasury recently announced that the American Recovery and Reinvestment Act of 2009’s new-car tax deduction now extends to consumers in states without a sales or excise tax (boston.com June 17). These states include Alaska, Delaware, Hawaii, Montana, New Hampshire and Oregon. If you live in any of the other 44 states, you’re still able to deduct state or local sales or excise taxes paid on the qualifying vehicle purchase (ustreas.gov June 11). Here’s what you need to know to qualify for this special tax deduction:
* Purchase deadline.The new car, light truck, motor home or motorcycle must be purchased after Feb. 16, and before January 1, 2010. * When to file.The deduction applies only to your 2009 federal tax return, which you’ll file in 2010. * Itemized or not.You can claim the special deduction regardless of whether you itemize deductions on your federal tax return. * Price limit.Your deduction is limited to fees or taxes you paid on up to $49,500 of the vehicle’s purchase price. * Phase-out.The deduction begins to get smaller if your modified adjusted gross income is at $125,000, and the deduction is exhausted at $135,000 for individual filers. For joint filers, the special tax deduction is phased out at between $250,000 and $260,000 of your modified adjusted gross income.
For more information, read “Hybrid Vehicles: Benefits Beyond Gas Savings” in Home & Family Finance Resource Center.
Other Resources

RSS print
News Now LiveWire
For the last 75 years, even in the most difficult of times, Mill Town #CU has been there for the community it serves. Read #NewsNow Tues.
3 hours ago
The 1st vid shows how consumer can become victim and, advice to those who think they've been targeted. http://t.co/hr9VHpzEze
7 hours ago
.@TheNCUA has released two videos designed to raise awareness of elder financial abuse. http://t.co/iddSxr7H40
7 hours ago
Celebrate #100MM with @MDDCCUA1 at Orioles v Blue Jays tonight at Camden Yards
8 hours ago
The At Home In Lawrence mortgage program from @MetroCU is designed to help revitalize Lawrence, Mass.
8 hours ago
150x172_Annual Report 2013Unite for Good Share your Stories100 Million CU Memberships