ST-556?

[Vincent]

Jurisdiction

Illinois

Thanks for the help in advance.

If it matters this is in Cook County in IL.

I bought a new car in 2023.

Traded in a car that I still owed about $300 on. (Trade in was $3700, I paid the $300 difference to the loan company that had the title )

I received a ST-556 from the Car Dealership.

Hopefully this is a simple question.

What if anything am I supposed to do with this form.

It states that I paid about $2100 in IL sales tax after the purchase price of the new car and the trade in.

Do I have to file this on my taxes this year?

Will it increase or decrese my tax liability?

Thank you!

 

[Tax Counsel]

Do I have to file this on my taxes this year?

Will it increase or decrese my tax liability?

Thank you!

From what I see from the Illinois Revenue Department, the form is one that is completed by the seller and filed with the state (preferably electronically). I don't know if a copy of the form is required to be given to the buyer or if the dealer is just deciding to do that itself. The copy should show the sales tax you paid, and in that regard would be good evidence should the state later come to you saying that sales tax still needs to be paid on it. You may have to provide a copy of that form when registering and titling the vehicle to prove the sales tax paid so they don't hit you up for the tax again to get your title, license plates, and tags.

It would also support your claim to a deduction on your federal income tax return for sales taxes paid, assuming that you have enough in itemized deductions that exceed the standard deduction to make itemizing your deductions instead of taking the standard deduction worthwhile.

It's a good form to keep with your other records relating to the vehicle. You may need it at some point. But there's nothing you need to do today with it, unless you are going in today to get plates, registration and tags. In that latter case, take it with you in case they need to see it.

 

[Vincent]

Hello,

Thank you for a quick and detailed response.

That definitely helps!

Have a great day.