Can I claim personal property tax on my vehicles in the state of North Carolina?

Forum|Forum|7 years ago
June 1, 2019
3 replies
0 views

No text available

TurboTax Deluxe Online

IsabellaG

Level 13

Yes. In North Carolina, you can deduct the Vehicle Property Tax you paid on your vehicles.

You can enter this expense under Deductions and Credits, in the section Cars and Other Things That You Own.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

russyeager

Level 2

I entered my NC vehicle property tax under Car Registration Fees, but my Federal Tax Due did not change. Is TT handling this correctly?

LindaBelmont

Level 6

If you are asking if they can be included on your NC return, the answer is no. NC changed the law several years ago and you can no longer deduct personal property taxes on the NC return even though you can deduct them on your federal return.

From the instructions from NC

No itemized deductions included on federal,Schedule A (Form 1040) are allowed as N.C. itemized deductions except qualified home mortgage interest (excluding mortgage insurance premiums), real estate property taxes, charitable contributions, medical and dental expenses, and repayment of claim of right income.

http://www.dor.state.nc.us/downloads/D401.pdf

Jquez

Level 4

This is what I see on TurboTax for NC. Only county tax can be included it appears, not the city tax, or registration fee. Someone please let me know if this is correct. Thanks!

JohnW152

Level 15

Only the vehicle property tax you paid to your North Carolina county on your vehicles is deductible as an itemized deduction on your federal return, but make your entry on the screen that you’ve displayed.

Sometimes these fees are named different things in different states.

Please see the TurboTax Help article Is my car registration fee deductible? for more information.

@Jquez