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Are you trying to deduct sales tax from the purchase of a new vehicle? You may be able to claim an itemized deduction for any sales taxes if your itemized deductions exceed your standard deduction for your filing status. When you make your entries, TurboTax will leverage the best deduction for you.
Here's how to enter the sales tax you paid:
- With your tax return open in TurboTax, search for sales tax and then select the Jump to link in the search results.
- On the Sales Tax and Income Tax screen, select Continue with Sales Tax.
- In the CD/download software, the screen name will be Let's Compare Your Sales Tax and Income Tax – click Try Sales Tax.
- When asked how you want to enter your sales tax, select EasyGuide.
- Answer the questions on the next few screens. When you get to the Major Purchases screen, answer Yes.
- Follow the onscreen instructions to enter your info.
These instructions can also be found in the original article here.
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