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Level 1
April 11, 2024
Question

Can taxes on car repairs be listed as aa sales tax?

  • April 11, 2024
  • 2 replies
  • 0 views
I had my car engine replaced and payed tax on it. Is this a sales Tax for the purchase of repair services?

2 replies

Level 15
April 11, 2024

No.   

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
Level 15
April 11, 2024

Yes.  If you are itemizing your return and taking the sales tax deduction instead of the income and property tax deduction, you can include the sales tax on the replacement of your engine.

 

Itemized expenses include mortgage interest,  charitable contributions, state and local taxes up to $10,000, medical expenses in excess of 7.5% of your AGI and casualty and losses in excess of 10% of you AGI with the first $100 not counting towards the loss.  Your health insurance and all medical expenses are only deductible for the amount that is over 7.5% of your AGI.  This means if your AGI is $50,000, then the amount that is over $3,750 is deductible.  

 

Then your total itemized expenses would need to be greater than your standard deduction below in order to benefit from your sales tax paid. 

 

The 2023 Standard Deductions are as follows:

  • Married Filing Joint (MFJ)              $27,700
  • Married Filing Separate (MFS)      $13,850
  • Head of Household (HOH)             $20,800 
  • Single                                                     $13,850                                

Blind or over 65 and MFJ or MFS add $1,500

Single or HOH if blind or over 65 add $1,850

 

 

Standard versus Itemized Deduction

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