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Level 1
June 1, 2019
Solved

What section do I add the taxes from the purchase of a new vehicle?

  • June 1, 2019
  • 2 replies
  • 0 views
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Best answer by ddaven12

Please follow the steps below to  add the sales tax paid for the new vehicle in TurboTax Online:

  • Go to Federal Taxes
  • Then go to Deductions & Credits if given the option select "Jump to full list"
  • Scroll down the page to "Estimates and Other Taxes Paid".
  • Click Start next to Sales Tax and continue through the interview.
  • When asked "How do you want to enter your sales tax info" select the "EasyGuide".
  • Next enter the State where you lived and the dates, then continue.
  • You will next see a question asking you to enter the Sales tax rate paid while living in your state.
  • Finally you will see "Major Purchases", you will then be able to enter the sales tax paid for the vehicle.


2 replies

ddaven12Answer
Level 10
June 1, 2019

Please follow the steps below to  add the sales tax paid for the new vehicle in TurboTax Online:

  • Go to Federal Taxes
  • Then go to Deductions & Credits if given the option select "Jump to full list"
  • Scroll down the page to "Estimates and Other Taxes Paid".
  • Click Start next to Sales Tax and continue through the interview.
  • When asked "How do you want to enter your sales tax info" select the "EasyGuide".
  • Next enter the State where you lived and the dates, then continue.
  • You will next see a question asking you to enter the Sales tax rate paid while living in your state.
  • Finally you will see "Major Purchases", you will then be able to enter the sales tax paid for the vehicle.


Carl
Level 11
Level 11
June 22, 2019

Under the Deductions & Credits tab there's a section for "Estimates and Other Taxes Paid". In that section is a sub-section for sales tax. Do be aware however that there is a limit on your federal return for SALT (State & Local Taxes) of $10K. But if you have more than $10K enter them all anyway because they can probably be used on your state return, if your state taxes personal income.

Hal_Al
Level 15
Level 15
June 23, 2019

Some states don't have income taxes to deduct, so the IRS allows you to deduct either sales taxes OR state & local income taxes (but not both). For residents of most states, it's usually best to deduct income taxes, except when you have a large purchase subject to sales tax, like you.