[Dstew]

Ok, going to ask a dumb question:

I live in Ohio and leased my car from a Michigan dealer. I just received a check for taxes (Ohio). I thought the tax was baked into the lease payment?
The check was for 1399 (less than ohios 7% tax on a 42k vehicle).

Soooo am i supposed to make a lump payment??

 

[vbx]

Ok, going to ask a dumb question:

I live in Ohio and leased my car from a Michigan dealer. I just received a check for taxes (Ohio). I thought the tax was baked into the lease payment?
The check was for 1399 (less than ohios 7% tax on a 42k vehicle).

Soooo am i supposed to make a lump payment??

Yep, it should included into the lease payment. Double check to make sure the State isn't double dipping you. Call the dealership you bought it from or look at the long form? Not sure if leasing gets you a long form.

But the paperwork you signed should have a break down.

 

[Dstew]

Appears that it might be a double dip! Taxes are already in the payment, but they sent me a check for registration, and i already registered the car and the dmv never asked for tax. Sooo i have a 1300 check just in case?

 

[Mrkalu]

While we're on the subject, isn't there a tax credit comes income tax season for new auto buyers?

 

[InfinitiPlusOne]

Someone told me that you can get some tax credit if your state tax is less than the tax you pay for your new car. I don't know if this is true, make sure to mention this to your tax preparer.

While we're on the subject, isn't there a tax credit comes income tax season for new auto buyers?

 

[selzini]

While we're on the subject, isn't there a tax credit comes income tax season for new auto buyers?

Not a tax credit. If you itemize on your IRS return, you can deduct either your state income tax or your sales tax paid during the year. If you deduct the sales tax, there is a percentage based on your gross income tax you can deduct. In addition, you are allowed to add to that amount the sales tax on "large purchases" such as a car or home improvement(even your yacht if you bought one). I'm in one of the few states without the income tax, so that's what I will do.

 

[Gandhi]

What Selzini said it correct