There has been a ton of confusion about whether money received through the Cash for Clunkers program is taxable.  What follows is my opinion of both the cause of the confusion and the reality of the situation.  Much of the confusion is based on a news article quoting Minnehaha County (South Dakota) Treasurer Pam Nelson.  In the article Some Surprised by ‘Clunker’ Tax, she is quoted as saying (regarding CARS participants)   “They didn’t realize that would be taxable. A lot of people don’t realize that. So they’re not happy and kind of surprised when they find that out”

When people started hearing that the Cash for Clunkers credit was taxable, they may have falsely concluded that it was subject to federal income tax.  This does not seem to be the case.  The official CARS website specifically states that the credit is not taxed as income to the consumers that participate in the program.  So you will not have to pay federal income tax on the credit as you might for a forgiven or canceled debt.

That is not to say that the Cash for Clunkers’ credit is free from tax.  In many states

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The Cash for Clunkers law is intended to jump start the auto industry by inspiring people to purchase new cars.  Touted secondary benefits include aiding consumers in new car purchases and various environmental benefits.  The program offers vouchers towards the purchase of a new car when an older, lower MPG car is traded-in.  The restrictions of the law make the program much less effective than it could have been and most consumers may be better off skipping the program entirely.

The voucher you receive would start at $3,500.  Your passenger car clunker must be at least 8 years old and have fuel efficiency at least 4 MPG worse than the new car.  If it’s 10 MPG worse, then you could get the larger voucher, worth $4,500.

If your car is at least 8 years old, congratulations.  Owning vehicles for a long time is a favorite technique of the frugally minded.  Driving a more fuel-efficient car sounds like a money savings potential as well.  So what’s the problem with the Cash for Clunkers program?

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There are many freebies and promotions available in the United States on Tax Day, April 15th.  Add any other deals I may have missed to the comments section and pass the word about these deals using your favorite form of social bookmarking.  Price and participation often vary for deals, so check with the company directly to see if the offer is available at your location.

Taco Del Mar: Register for an emailed coupon for a free taco at the Taxes Suck. Tacos Don’t promotional page.

Cinnabon: Free samples of Tax Day Bites (usually known as Classic Bites) from 5-8 p.m.

Papa Johns Pizza: Three free toppings with purchase of a large cheese pizza.  Order online and use coupon code “1040″ to get toppings at no additional charge.

McDonalds: Buy one Quarter Pounder with Cheese or Big Mac and get a second sandwich for just one penny.

McDonalds: Free chicken biscuit w/ med drink purchase before noon or free chicken sandwich w/ med drink purchase after noon.

McDonalds(with McCafe): Free small hot McCafes or medium iced McCafe Coffee.

MaggieMoo’s Ice Cream and Treatery: One free single-scoop of ice cream as part of their e-cone-omic ice cream stimulus package.

Chick-Fil-A: Make a purchase and

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With oil prices hitting record highs, it’s no wonder that gas prices continue to remain high. To help combat overspending, shop around for the lowest price and fill you tank at the coolest time of day.

To accomplish the first point, use GasBuddy.com. There you can enter your zipcode and find the cheapest gas in your area. It doesn’t make sense to drive to a distant gas station to save a few pennies, but as they say on the site, gas prices can vary by as much as 20% within only a few blocks. Going slightly out of your way for a

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If you already have a high-speed internet connection at home, then you might as well take advantage of that speed and save some money on your home phone service. I use Vonage and it saves me a ton of money.

They offer an unlimited calling plan for $25 a month, or the plan that I use, 500 outgoing minutes, for $15 a month. I had been paying about $40 a month for my crappy, no feature phone line, from Verizon. Then I had to pay long distance on top of that.

Since my incoming calls are free, and outgoing calls to 800 numbers don’t count against my minutes (like they do on my cell phone) 500 minutes a month is plenty for me. Even if you have to go for the $25 unlimited plan, it’s still probably much cheaper than what you’re paying.

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Already at the store when you’d like to make a price comparison? Try using Frucall. You can do a comparison based on UPC code (or ISBN for Books) by calling 1-888-DO-FRUCALL (1-888-363-7822). The service is free. For more free features, or to search by brand and product name, you can text them or use their mobile website at FRU11 (37811) and http://www.frucall.com/m/ respectively.