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Cash for Clunkers is TAXABLE! Did you participate??

Cash for Clunkers is taxable folks. It is NOT federal income taxable, but taxable nonetheless. Many people are discovering they have to pay sales tax on it when they register their vehicle. It is likely it will be considered income in some states and therefore taxable.

http://www.kxmb.com/News/Nation/426698.asp
http://money.cnn.com/news/newsfeeds/siliconalley/green-tech/whoops_cash_for_clunker_participants_dont_realize_their_rebates_get_taxed_2009_8.html
http://www.keloland.com/NewsDetail6162.cfm?Id=0,89084

My state taxes everything. If you get a refund from your federal return it is taxable!





Answer Question
 
yourspecialkid

Asked by yourspecialkid at 11:25 PM on Aug. 26, 2009 in Politics & Current Events

Level 35 (74,634 Credits)
Answers (16)
  • yourspecialkid

    Answer by yourspecialkid at 11:26 PM on Aug. 26, 2009

  • nope i never owned a clunker always drove brand new
    Anonymous

    Answer by Anonymous at 11:26 PM on Aug. 26, 2009

  • The government giveth and the government taketh away.
    Anonymous

    Answer by Anonymous at 11:27 PM on Aug. 26, 2009

  • Yup, and only 2% of dealers have been paid, last I heard... WOW what a wonderful GOVERNMENT Program...... It demonstrates, transparency, accountability, and contains no wasteful spending.  Just like the stimulus with it's payment to dead people and convicts.. Go Big Government   ::sarcasm::

    grlygrlz2

    Answer by grlygrlz2 at 11:33 PM on Aug. 26, 2009

  • they're not being paid bc they aren't turning in the paperwork. On our local news they showed various dealerships with huge stacks of unfinished paperwork.
    Anonymous

    Answer by Anonymous at 11:36 PM on Aug. 26, 2009

  • LMAO. AND? Duh! That's common sense fist of all. Second of all, are you trying to say that this was a surprise, that the government didn't WARN you about taxes? (even though it should be common sense). I regret to inform you, actually I don't because I love laughing at you, that they did in fact warn that the CARS rebate program doesn't affect state and federal tax laws. Its in the rules


    Rules

    SRiveroC

    Answer by SRiveroC at 11:41 PM on Aug. 26, 2009

  • they're not being paid bc they aren't turning in the paperwork.


    Not entirely true. Our local dealership stopped participating some time ago. It took 5-6 submissions before paperwork would be accepted. At the time they stopped participating they hadn't received a dime in payment.
    yourspecialkid

    Answer by yourspecialkid at 11:41 PM on Aug. 26, 2009

  • Most states will take into account a federal return. That has been true for the last 3 states I lived in.

    Why would it be free from the state POV? The state is going to get theirs, no matter what.

    Most ads always state taxes, tags, and other fees may apply. There generally are disclaimers.
    LiliM

    Answer by LiliM at 11:44 PM on Aug. 26, 2009

  • SRiveroC you have no reason to laugh at ME.  I didn't participate.  We bought our new vehicles in November when the bottome fell out of the car market.  We got much better deals than the govs cash for crap.


    If you had bothered to read the entire question you would have seen that I already saidit wasn't federally taxable.  You are incorrect about the state taxes.  The feds can't make laws for the states.


    It seems Cali is already gearing up for their cut.


    http://latimesblogs.latimes.com/uptospeed/2009/07/clunkers.html


     


    http://latimesblogs.latimes.com/uptospeed/2009/07/clunkers.html

    yourspecialkid

    Answer by yourspecialkid at 12:15 AM on Aug. 27, 2009

  • Oops! I didn't mean to post the link twice.
    yourspecialkid

    Answer by yourspecialkid at 12:16 AM on Aug. 27, 2009

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