https://ttlc.intuit.com/community/taxes/discussion/re-car-buyback/01/3104472#M1137981 <P>Hi Staceys411,&nbsp;</P> <P>Glad you were able to recoup your money. Since you paid for the car with after tax dollars&nbsp;(in other words, you have already paid taxes on that money when you earned it), these funds are not liable for taxation on your return this year.&nbsp;</P> Wed, 25 Oct 2023 19:56:04 GMT carolineb 2023-10-25T19:56:04Z https://ttlc.intuit.com/community/taxes/discussion/car-buyback/01/3104464#M1137980 <P>My car was bought back because of lemon law by the manufacturer. I got all down payment and payments back for the year. Is that money taxable this year?&nbsp;</P> Tue, 24 Feb 2026 07:34:04 GMT https://ttlc.intuit.com/community/taxes/discussion/car-buyback/01/3104464#M1137980 Staceys411 2026-02-24T07:34:04Z https://ttlc.intuit.com/community/taxes/discussion/re-car-buyback/01/3104472#M1137981 <P>Hi Staceys411,&nbsp;</P> <P>Glad you were able to recoup your money. Since you paid for the car with after tax dollars&nbsp;(in other words, you have already paid taxes on that money when you earned it), these funds are not liable for taxation on your return this year.&nbsp;</P> Wed, 25 Oct 2023 19:56:04 GMT https://ttlc.intuit.com/community/taxes/discussion/re-car-buyback/01/3104472#M1137981 carolineb 2023-10-25T19:56:04Z