IRS offers tax break to Alabama car buyers

By: BIRMINGHAM, Ala. (AP)
By: BIRMINGHAM, Ala. (AP)

The Internal Revenue Service is offering Alabama car buyers a tax break. The tax deduction is for next year's taxes for vehicles purchased during certain times in 2009.

The tax agency announced Monday that individuals who buy a new car may be entitled to deduct Alabama and local sales and excise taxes paid on the purchase on their 2010 tax returns.

The deduction is limited to taxes paid on up to $49,500 of the purchase price of a qualified new car, light truck, motor home or motorcycle. But, there is a hitch. Alabama taxpayers whose modified adjusted gross income is between $125,000 or more and joint filers making more than $250,000 are only eligible for part of the deduction. If they make $10,000 more, they are not allowed the deduction.

The IRS said the vehicle must be purchased after Feb. 16, 2009 and before Jan. 1, 2010, to qualify.


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