tax on cash for clunkers

[Bob Kingsbury]

Someone sent me an email the other day, saying money received as cash
for clunkers goes on your income tax

 

[Fred J]

Looks that way

So does that stimulus check everyone recieved as well as the so called Tax Cut.

 

[crb]

Both of my clunkers are running just fine, thank you.

 

[Bill Wynne]

Someone sent me an email the other day, saying money received as cash
for clunkers goes on your income tax

It is hard for me to express surprise.

Concho Bill

 

[Pete Wass]

These Facts

have been fairly well publicized. One needs to beware of folks offering Cool Aid.

 

[alinwa]

Let's all remember, "we" voted for this...... now WE have to vote some more..... better.

al

 

[BillPa]

Someone sent me an email the other day, saying money received as cash
for clunkers goes on your income tax

Rumor as far as the Federal Income Tax code is concerned.

"The CARS Act expressly provides that the credit is not income for the consumer."

However, under some State's Income tax code it may be. I can't speak for the others, but its not considered income under the Pa. Income Tax code. Additionally, the $3500-$4500 was treated as a cash down payment and deducted from the vehicle purchase price, the remainder only being subject to the 6% sales tax.

You would have to check to determine if its subject to income tax in your state, but the " Infernal Revenue Service" is forbidden by law to consider it as income.