I bought a new car this year, and with tax season coming up, I was wondering if there can be a tax refund?

Question

I live in Washington State and they have sales tax here.

Answer 1

I believe state taxes are deductible from your federal return, but check with a pro to be sure.

Answer 2

Since you don't have a state income tax, if you itemize you can claim sales tax instead. There is a table for your state, income and family size. Sales tax paid on a new car can be added to the amount from the table.

If you don't itemize, then no you don't get a deduction.

Answer 3

If you use your car for your job, such as sales and you are sales commission you will be able to deduct depreciation and expenses, such as gas, plates, insurance, car washes, maintenance etc.

If not...No

A good tax accountant can work wonders and could be worth the investment.