Washington ? I hosted an online discussion recently, and one of the participants had purchased a new car on President’s Day, Feb. 16.

Had he waited just one day, he would have qualified for a tax break that allows new car buyers to deduct state, local sales and excise taxes on their federal returns.

The deduction is only available for taxpayers who purchased new vehicles on or after Feb. 17 — when the American Recovery and Reinvestment Act of 2009, better known as the economic stimulus plan, was signed by President Barack Obama.

“I feel duped,” the person wrote. “The reason I decided on new versus used was because of the tax credit. I thought I would qualify … as the dealer told me.”

Duped?

I don’t think so. The dealer may have believed the buyer would qualify for the tax break. And the buyer would have, had Obama signed the bill by President’s Day as was planned. But he didn’t.

There’s a lesson for a lot of people confused about the stimulus plan. You need to separate fact from hearsay. Here are some questions I’ve received from readers:

What are the exact dates covered for the tax deduction for sales taxes on new cars bought in 2009?

The deduction for state, local sales and excise taxes on new cars, light trucks, motor homes and motorcycles is allowed from Feb. 17 through Dec. 31, 2009. The deduction is phased out for joint filers with modified adjusted gross income between $250,000 and $260,000. For other taxpayers, it’s phased out if your modified adjusted gross income is between $125,000 and $135,000.

I am about to buy a new car that I have negotiated from $56,410 to $49,900. Do I have to pay $49,500 or below for a vehicle to get the car sales tax deduction?

The deduction is limited to the tax on up to $49,500 of the purchase price of an eligible motor vehicle.

If you buy your home in 2009, can you take the first-time home buyer credit on your 2008 tax return or your 2009 tax return?

If you purchase a principal residence on or after Jan. 1, 2009, and before Dec. 1, 2009, you can elect to take the first-time homebuyer’s tax credit of up to $8,000 either on your 2008 return or next year on your 2009 tax return. The credit is equal to 10 percent of the home purchase price, up to the $8,000 limit.

Go to the National Association of Realtors (realtor.org) for more information.

The first-time homebuyer credit can be claimed on IRS Form 5405, which also provides additional information.

What are the income limits for the first-time homebuyer credit?

You are allowed the full amount of the credit (based on purchase price) if your modified adjusted gross income is $75,000 or less ($150,000 or less if married filing jointly). The phaseout begins when your modified adjusted gross income exceeds $75,000 ($150,000 if married filing jointly). The credit is eliminated at $95,000 ($170,000 if married filing jointly).

Was there anything in the stimulus plan to allow penalty-free or tax-free withdrawals from a 401(k)?

Sorry, the American Recovery and Reinvestment Act does not provide tax relief for early withdrawals from 401(k) or IRA distributions.

Keep checking the IRS Web site (irs.gov) for the latest updates about the law. Or seek the advice of a qualified tax preparer or download the latest updates for tax software before making a financial decision.

To do otherwise could cost you big money.